Pete Peterson on US Debt - Aug. 11, 2009 (5min.)

[LargoWinch]

The attached clip shows Pete Peterson, on Forbes on Aug. 11, 2009 discussing the current and future fiscal position in the US.

I also recommend you read the comments contained in this thread regarding Peterson.

Runtime: 5min.

[ThePythonicCow]

Re: Pete Peterson on US Debt - Aug. 11, 2009 (5min.)

Peterson is one big time dude, including former CEO of Lehman, founder of Blackstone and former chair of the CFR. I am having difficulty separating my appreciation for what he is saying here with my cynical view of the CFR. The moral, economic and intellectual decay of America's politics, media, and big businesses seems to concern CFR leaders as much as it does us alert plebians.

[World Traveler]

Re: Pete Peterson on US Debt - Aug. 11, 2009 (5min.)

Pete Peterson is a typical American oligarch. He wants to keep his billions and balance America's books on the backs of those least able to afford it.

Now that he is a billionaire who made his fortune in Private Equity (Chairman and co-founder of the Blackstone group), he is worried that America is on an unsustainable path to financial ruin and so sponsors a movie called I.O.U.S.A.

His solution (in his 2005 book Running on Empty), is to cut back on Social Security and Medicare for America's middle class and to enact legislation that requires American citizens to invest a certain portion of their incomes.

He is opposed to raising the 15% tax enjoyed by Private Equity firms, that would spread the pain of belt-tightening to America's super-rich financial elite. To quote from article in link below:

"As a co-founder of Blackstone, Mr. Peterson has a fiduciary responsibility to the firm, his partners and its employees, restraining any impulse he may have had to call for a tax increase that would have halved his company’s profits, to say nothing of his own wealth...

“This is a fairness argument,” said Mr. Peterson, who says that increasing the 15 percent rate for so-called carried interest [private equity profits], compared with ordinary tax rates of roughly double that, would force private equity companies overseas. “There are so many other partnerships, why pick on this high-growth sector?”

At a time when hedge fund and private equity magnates have garnered billion-dollar fortunes from the fading alternative asset boom,..."

I put him in the category of false prophet, who wants to balance America's financial books on the backs of those least able to afford the burden, while sparing Wall Street's financial titans.

http://www.nytimes.com/2008/02/15/bu...=1&oref=slogin

[LargoWinch]

Re: Pete Peterson on US Debt - Aug. 11, 2009 (5min.)

Peterson is one big time dude, including former CEO of Lehman, founder of Blackstone and former chair of the CFR. I am having difficulty separating my appreciation for what he is saying here with my cynical view of the CFR. The moral, economic and intellectual decay of America's politics, media, and big businesses seems to concern CFR leaders as much as it does us alert plebians.

Thanks TPC, was not aware of Peterson's background.

Perhaps he has remorse fuelling FIRE for the oligarchs at the expense of the vast majority of Americans before passing away?

[kartius919]

Re: Pete Peterson on US Debt - Aug. 11, 2009 (5min.)

No. He praised Geithner in a previous interview. Glowing reviews. Like one of his own. A lying, slithering, satanic spawn.

[FRED]

Re: Pete Peterson on US Debt - Aug. 11, 2009 (5min.)

No. He praised Geithner in a previous interview. Glowing reviews. Like one of his own. A lying, slithering, satanic spawn.

Greenspan used to offer similar solutions: cut medicaid, medicare, and social security.

[metalman]

Re: Pete Peterson on US Debt - Aug. 11, 2009 (5min.)

Thanks TPC, was not aware of Peterson's background.

Perhaps he has remorse fuelling FIRE for the oligarchs at the expense of the vast majority of Americans before passing away?

the problem... debt.

the solution... screw the middle class.

we're doomed. if bright, skeptical & well educated itulipers fall for peterson's bullshit, what of j6p?

[LargoWinch]

Re: Pete Peterson on US Debt - Aug. 11, 2009 (5min.)

we're doomed. if bright, skeptical & well educated itulipers fall for peterson's bullshit, what of j6p?

I will take this as a compliment; thanks MM, but I will also edit my post following comments on this thread.

[metalman]

Re: Pete Peterson on US Debt - Aug. 11, 2009 (5min.)

I will take this as a compliment; thanks MM, but I will also edit my post following comments on this thread.

cool.

the debt is our fault. if we don't cut ss, medicare & medicaide we're bad people passing on debt to our children and grandchildren! while we're at it, demand only 1/2 our pensions so not to over burden the gov't and our children with more debt.

the guy's going to spend $1 billion to get this message out...

bleh.

we fekked.

[WildspitzE]

Re: Pete Peterson on US Debt - Aug. 11, 2009 (5min.)

In a few weeks I'm going to go see him speak at some breakfast, will report back if anything jumps out at me. I go to these things when invited because it is amazing what one picks up re: the bullhorn.

As I think I mentioned here one time in the past, I went to see the president of Mexico and some GS Vice chariman (along with a bunch of other self-important old people) talk about the future of North America. It was so funny to watch how they very subtlely poopooed all of the dumb and backward folks in the south who prevented the north american highway from materializing (for now, at that time). Or the time I got invited to see some world bank bigwig, man that was a new world order-SDR-global regulatory chat if I've ever seen one.

At least the food is delicious, even if I'm one of the three guys that doesn't clap at the end (the other two being my business partners).

[D-Mack]

Re: Pete Peterson on US Debt - Aug. 11, 2009 (5min.)

...
As I think I mentioned here one time in the past, I went to see the president of Mexico and some GS Vice chariman (along with a bunch of other self-important old people) talk about the future of North America. It was so funny to watch how they very subtlely poopooed all of the dumb and backward folks in the south who prevented the north american highway from materializing (for now, at that time). Or the time I got invited to see some world bank bigwig, man that was a new world order-SDR-global regulatory chat if I've ever seen one.
...

Could you talk more about it ?

I remember Vicente Fox being pissed at Chavez

[ThePythonicCow]

Re: Pete Peterson on US Debt - Aug. 11, 2009 (5min.)

all of the dumb and backward folks in the south who prevented the north american highway from materializing

Ya mean like us good ol Texans along I35? Yup.

[cjppjc]

Re: Pete Peterson on US Debt - Aug. 11, 2009 (5min.)

I think Peterson is speaking from his heart. While some of his opinions, and solutions might not be everyone's cup of tea, how many other choices are there. The amount of debt and unfunded mandates is so huge.

I know only one thing for sure. I have no answers to these problems.

[LargoWinch]

Re: Pete Peterson on US Debt - Aug. 11, 2009 (5min.)

I think Peterson is speaking from his heart. While some of his opinions, and solutions might not be everyone's cup of tea, how many other choices are there. The amount of debt and unfunded mandates is so huge.

I think what FRED and MM are getting at regarding Peterson's solutions is this: "why should we cut Social Security? what about more obvious way to address the imbalances"?

Why is Peterson not proposing a reduction in military expenditures? what about the bailouts and other FIRE-friendly programs? what about reducing the other huge costs of running the government?

Why is the little guy burdenned by debt and soon to be crushed by the inflation tax should pay yet again for government stupidity and mismanagement?

I agree. Peterson should be better drinking his $1B in Louis XIII Cognac, keep his mouth shut and stop writing one-sided books while pretending to "save us all" to boot.

[metalman]

Re: Pete Peterson on US Debt - Aug. 11, 2009 (5min.)

I think what FRED and MM are getting at regarding Peterson's solutions is this: "why should we cut Social Security? what about more obvious way to address the imbalances"?

Why is Peterson not proposing a reduction in military expenditures? what about the bailouts and other FIRE-friendly programs? what about reducing the other huge costs of running the government?

Why is the little guy burdenned by debt and soon to be crushed by the inflation tax should pay yet again for government stupidity and mismanagement?

I agree. Peterson should be better drinking his $1B in Louis XIII Cognac, keep his mouth shut and stop writing one-sided books while pretending to "save us all" to boot.

here's the solution that pete will never suggest...

- end gov't subsidies of the housing market
- let res real estate fall 50%
- write off 50% of the mortgage debt & interest payments
- shrink all financial debt by 50% & interest

vs

- the middle class thinks it has puts $$$ money into social security, medicaire, etc. fo 50 yrs to finance retirementnt and medical benefits
- pete says, 'take their money, it's not really there anyway. it was a trick'

so... in sum... confiscate the middle class savings, keep sucking them dry for interest payments on debt on inflated housing.

thanks pete! such a great american...