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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: cnyndwllr who wrote (105510)	3/5/2009 2:19:30 PM
From: slacker711	Read Replies (1) \| Respond to of 541877

Did you think that the mess we're in can be resolved by resorting to some rigid ideological principle of balanced budgets? You read me wrong if you think I am balanced budget absolutist. Steve has that covered on this thread. OTOH, the fact that we dont have to have a balanced budget doesnt mean that we can afford every single thing on your and Obama's list. There is a limit to how much the rest of the world will lend us and if you combine our likely growth rate with Obama's spending plans, we are likely going to be well over that threshold. The deficit in Obama's out years are likely to be above 5% of GDP. You should only see those kinds of numbers in times of economic contraction or war. I have two scenarios that end up in absolute economic disaster for the US. One is an actual run on the banks (we havent seen that yet) and the second is the rest of the world getting worried about our long-term fiscal plan and demanding substantially higher returns on our treasuries. If the world decides that trillion dollar deficits will be the norm and jacks up rates while we are in the midst of this economic collapse, I really will start thinking about stocking up on food and buying guns. Slacker