I wish my question was about a visit to Ben and Jerry’s…..but unfortunately it is not but rather a crashing economy…….the debt deal has been made and it will involve tax cuts, spending cuts, balance budget and NO revenue…….and I am old enough to ask….where have I heard all this before?
But what do the people think about all the wheelin’ and dealin’?
A new USA Today/Gallup poll finds 39% of Americans approve of the debt ceiling agreement that President Obama signed into law this week with 46% opposing it.
Key finding: Only 33% of independent voters approved of the deal, while 50% disapproved.
First Read: “But if you want evidence that conservative opinion leaders (Limbaugh, Red State, DeMint) might have more sway over Republicans and conservatives than liberal opinion leaders (Krugman, Daily Kos, Bernie Sanders) have over Democrats and liberals, check out these numbers. According to the poll, 64% of Republicans and 64% of conservatives opposed the deal. By comparison, 58% of Democrats and 51% of liberals supported it. Bottom line, at least per this poll: More Democrats and liberals sided with Obama. than with the liberal opinion elite.”
But let us get back to where I have heard all this BS before?
In 1937 the Roosevelt administration attempted to balance the federal budget by curtailing public works and cutting relief employment programs, while the Federal Reserve limited credit and reduced the money supply to prevent a resurgence of inflation. These actions weakened the economy, which already suffered from a lack of business confidence, and a severe recession ensued after the stock market plunged steeply on 7 September 1937. Over the following nine months, manufacturing employment fell by almost a quarter, industrial output by a third, the stock market by half, and profits by over three-quarters. By June, as the economy began to revive, 4,000,000 workers had become jobless. A major reason for the upturn in business activity was a greater willingness to use budget deficits for economic stimulus……….Geez all that sounds darn familiar, huh? By all means Google this and see if I lie…please…do not take my word for it!
Everybody has claimed victory in the new debt deal…….the truth is these twats are just repeating the mistake made in 1937…..and that was a disaster…..and guess what? This will be also! The use of budget deficits is a proven solution for a recession……regardless of what Tea baggers want you to believe……….recent activity or the lack thereof, on Wall Street shows the reader that all is NOT well with the American economy…..and to keep playing moronic, childish little games will do NOTHING to help the country…it will NOT create demand and without demand….we have NOTHING!
A Double dip? This from the Economist magazine…..
WALL STREET is betting on a double-dip recession.
All financial-market signs now point to a return to economic contraction. The S&P 500 has dropped 9% in two weeks. American government borrowing costs are plummeting, which could conceivably be construed as a result of increased confidence in America’s finances in the wake of the debt-ceiling deal, except for three things: 1) the deal didn’t fundamentally improve America’s finances, 2) equities are tanking, and 3) so are inflation expectations. Yesterday afternoon, yields on inflation-protected Treasuries signaled a 5-year expected inflation rate of about 2.08%. That has since fallen to about 1.86%. The yield on 3-month debt is back to 0.0%, the yield on the 30-year Treasury is 3.79%, and 10-year yields are back to levels observed last August, which prompted the Fed to engage in QE2. Commodities are dropping like rocks.
If Washington continues down this road…that would be the road that that darn pesky can is on…….we have nothing to look forward to but More Economic Misery……..don’t you just love this crap?
But wait, sports fans….there is more observations….this one from Newser……..
Economists say we could be headed for a second recession—and if they’re right, it’s poised to be even more devastating than the first, writes Catherine Rampell in the New York Times. That’s because the starting point for the second dip would be our current weak economy, and this time, policymakers have little room to fix things. Consumers don’t have much fat to cut, either—they did that already—meaning families would have to “cut from the bone.” Other signs round two would be a doozy: Consumer spending hasn’t grown; industrial production is down 8% compared to December 2007; and while the civilian working-age population has grown about 3% since 2007, there are 5% fewer jobs for it. Interest rates can’t go lower than their current zero, and Washington lacks the financial and political means for another stimulus. Finally, “and perhaps most worrisome,” is the fact that the economy is smaller now than it was at the beginning of the recession.
This country is in deep trouble……as long as we allow idiots to run the country and shape economic policy….the deeper the recession will get and the harder it will be to pull out of it…..