Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (114213)	5/25/2012 2:17:37 PM
From: RetiredNow	Read Replies (2) \| Respond to of 149317

That's bunk. I've never argued for fast deficit reductions in this macro-economic climate. I've said that would be a mistake. I think what's needed is a CREDIBLE PLAN for deficit reduction. This idea that we all can run deficits ad infinitum, or should I say ad absurdum, is a recipe for disaster. What is needed is a credible plan to reduce deficits over time, while giving many of these countries time to sort out their finances and stabilize for longer term growth. Quick cuts as have happened in Greece, were always a mistake designed primarily to help the bankers not the Greek people. And another thing, I actually believe low rates of inflation are ok, because they can help reduce the debt burden, if we can grow fast enough. If our leaders used the rule of thumb of deficit growth + inflation growth must be < GDP growth, then we would be on a sound, stable path. But we've been running annual deficits of 10% of GDP and inflation at "official" levels of 3% (which is bullshit...actual levels are much higher), for a total of 13% of GDP growth annualized, as compared to a GDP growth rate of 2%. So we're running stimulus levels of 11% of GDP per year! And what's worse is that we have no plan, none whatsoever, to get that under control, not 1 year from now, not 5 years, and not 10 years from now. NO PLAN. Do you really believe any of this is sustainable?