Posted on 07/31/2011 9:25:53 PM PDT by 2ndDivisionVet
A deal to raise the federal debt ceiling is in the works. If it goes through, many commentators will declare that disaster was avoided. But they will be wrong.
For the deal itself, given the available information, is a disaster, and not just for President Obama and his party. It will damage an already depressed economy; it will probably make America’s long-run deficit problem worse, not better; and most important, by demonstrating that raw extortion works and carries no political cost, it will take America a long way down the road to banana-republic status.
Start with the economics. We currently have a deeply depressed economy. We will almost certainly continue to have a depressed economy all through next year. And we will probably have a depressed economy through 2013 as well, if not beyond.
The worst thing you can do in these circumstances is slash government spending, since that will depress the economy even further. Pay no attention to those who invoke the confidence fairy, claiming that tough action on the budget will reassure businesses and consumers, leading them to spend more. It doesn’t work that way, a fact confirmed by many studies of the historical record.
Indeed, slashing spending while the economy is depressed won’t even help the budget situation much, and might well make it worse.....
(Excerpt) Read more at nytimes.com ...
Both.
The world markets have the $ up today. We’ll see long term, assuming the deal passes, but from what I’ve seen this beats the alteratives to date.
TP should declare victory a la Clinton, and move on to the ‘12 elections
Perhaps he should 1) get new, larger, panties, or 2) write for Isvetia. Either one will settle his hash.
Oh...and if he thinks his bile is reaching a critical level or that his spleen is overfull and the vent stuck closed....just wait until we win in Nov 2012 with the new, (Madam??) CONSERVATIVE, President!
Apoplexia will be the least of his worries!
A Presstitute, writing what he knows is wrong but necessary to appease those you stuff his pockets with cash so he can continue living in his expensive gated community.
those WHO stuff his pockets
Why do these Commie nuts conclude that if money is not given to the government it is removed from the economy? It will be churned through private transactions much more efficiently than it would be if the Leviathan were controlling it.
Demoralizing Obama troops? Sounds like a win to me.
Now I read Krugman lying, and I realize I'm wrong.
———Is he obtuse or insane? -——
I would argue neither. He is just plain ol’ wrong.
Removing the government from the competition for funds will allow real economic growth.
If Krugman hates it, all other indicators aside, it must be good
Sheesh, Paul, you have gotten it completely wrong (again).
Like Punxsutawney Phil, if the Confidence Fairy emerges from her bunker only to see the gloomy shadow of an Obama Presidency continuing to wreak havoc on the country and the economy throughout the remainder of this term and then into a (heaven forbid) second term, of course she will retreat back into the hole. Any rational Confidence Fairy would do the same thing.
Now, if and when it becomes undeniable that Obama and his destructive policies will be defeated at the polls in 2012, the story will be different. The Confidence Fairy will take her first tentative steps away from the bunker, the sun will begin to return to the skies of America, and once again the future will hold the promise of better days ahead.
Not too long ago it was 'surplus' and 'prosperity'.
Michael Barone calls Krugman “a trade economist” who “writes partisan vitriol” in a column for the New York Times. I love it. Krugman is also an emotional basket case. Did his Mommy not love him?
If you say so, Sh#t-for-Brains.
What 'slash government spending'??? They've increased the debt limit $2.4Trillion through the 2012 election. Wake the **** up!! That's $2.4Trillion in government spending. There ain't no cut!!!
Great point!!! Now we watch the RINOs and Dims pass this POS.
THERE IS NO VICTORY TONIGHT. and there's not ever going to be one. Obama with the democrats and the rest of those damn politicians have ruined our country.
I’ve had it folks. That bastard Obama has won. I don’t care how you cut it, the bastard has won. Sure, he may not win in 2012, but so what, the country is already lost.
Sorry, but my string has snapped... I have had it.
There's a lot of truth in you words. I agree.
With the passage of this $2.4Trillion in additional spending by the Obama Administration, they win. They've got the money to buy the votes they need.
Important point, "and the rest of those damn politicians have ruined our country." You got it. The Bush Administration had 8 years to prevent this catastrophe. They were feeding the debt and spending beast before the Dimocrats got into power. And now, the RINOs are still at it.
With another $2.4Trillion to spend through the 2012 election, Obama has won!!
“Great point!!! Now we watch the RINOs and Dims pass this POS.”
...and so Pelosi now says that she’ll vote for it. It amazes me that the Dems can keep hitting the Republicans with the same playbook, and we keep bending over and taking it.
RINOs Suuucccckkkkeeeerrreeeeedddddd again!!!!
"You can't fix stupid" - - Ron White
“Fleas can be taught nearly anything that a Congressman can.” - - - Mark Twain
I think I'm gonna be sick!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.