So, how's that hopey-dopey workin' for ya? Gettin' your groove on? Party hardy, dude, just like Lady Obama is doin', 'cause the party's gonna crash-land way before your concerns about payin' your mortgage and fillin' your gas tank fully materialize.Read related » U.S. Is Bankrupt and We Don't Even Know It: Laurence KotlikoffCharlatan of Banking Committee Chris Dodd
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[Reading this related article in its entirety is recommended.]
“Uncle Sam’s Ponzi scheme will stop. But it will stop too late. And it will stop in a very nasty manner. The first possibility is massive benefit cuts visited on the baby boomers in retirement. The second is astronomical tax increases that leave the young with little incentive to work and save. And the third is the government simply printing vast quantities of money to cover its bills. Most likely we will see a combination of all three responses with dramatic increases in poverty, tax, interest rates and consumer prices. This is an awful, downhill road to follow, but it’s the one we are on. And bond traders will kick us miles down our road once they wake up and realize the U.S. is in worse fiscal shape than Greece. Some doctrinaire Keynesian economists would say any stimulus over the next few years won’t affect our ability to deal with deficits in the long run. This is wrong as a simple matter of arithmetic. The fiscal gap is the government’s credit-card bill and each year’s 14 percent of GDP is the interest on that bill. If it doesn’t pay this year’s interest, it will be added to the balance. Demand-siders say forgoing this year’s 14 percent fiscal tightening, and spending even more, will pay for itself, in present value, by expanding the economy and tax revenue. My reaction? Get real, or go hang out with equally deluded supply-siders. Our country is broke and can no longer afford no- pain, all-gain "solutions".”
— By Laurence Kotlikoff - Aug 10, 2010 (bloomberg.com)
I know most people are not interested in trying to decipher which economist's forecast is most nearly correct; after all, economics is "the dismal science". Dismal or no, prudence requires that people who haven't abandoned all personal accountability take note of what the responsible practitioners of this science predict, the operative word being "responsible".
Paul Krugman is not a responsible practitioner; he is a shill for the liberal-leftist media. How can this be substantiated? Easy. Krugman, along with Al Gore and Barack Obama, is a recent recipient of what has become the Dismal Prize, formerly known as the Nobel Prize, when it's awarded for excellence in shilling.
FULL DISCLOSURE: I am not an economist, but last year I took a couple of courses from two very intelligent professors of economics at North Carolina State University. Moreover, I recently stayed at a Holiday Inn Express.
Post 1,382 The Dismal Outlook
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