Here is a catchy little headline from No Quarter. There is no question we have to reduce the debt. However, today’s news should remind us that the debt isn’t the only issue:
To say 1.3 pct growth is anemic is an understatement. Its closer to saying “be happy with the job you have if you can keep it because you won’t get a better job unless someone dies and you may lose the one you have anyway.” OK that isn’t economic jargon but it is a stark way of explaining what a static growth economy means. Nowhere for college grads to go, no lateral transfers. Retirement? On what?
The blame is entirely on the WH and Congress. They seem to think letting illegal aliens into a no-growth economy is a good thing. Any wonder their ratings are poor? They have created bubbles in housing, finance, college education and elsewhere and now we wait for them to pop.
We may not be able to blame them so much when Reuters spouts lunacy. The debt-reduction talks are not a “danger” to the economy but part of the long-term fix. You can’t spend your way out of this. Debt must be tamed. But the banks must be tamed, too and probably first. But you can’t very easily endanger the health of an economy that is moribund. The idea that we have to spend more to “save” ourselves from disaster is silly.