Smoke and Mirrors accounting
Reader comment on: Now He Tells Us
Submitted by Fast Eddie (United States), Nov 14, 2012 14:50
Revenue projections covering 10 years are worthless. The 1.6 Trillion is just smoke and mirrors accounting. Republicans have said firmly that they will not permit tax RATES to increase and Obama is firmly committed to raising revenue in amounts that cannot be raised without raising tax rates. It appears likely that we may actually fall off that 'fiscal cliff' because the gap between Obama and the Republicans is so wide. And, of course, that Nobel-prize-winning-brilliant-beyond-all-measure economist P. Krugman is strongly advocating just such an outcome. Uncertainty abounds, but what is CERTAIN is that the Federal Reserve cannot continue indefinitely to add Trillion after Trillion to the economy without consequences, such as a recession when they start the slowdown in money creation and some really serious inflation as all the funny money they've created far outpaces the actual year over year increases in our GDP.
The last Fed Chairman to pump up the economy, prior to the Greenspan/Bernanke chairmanships, was Arthur Burns, who pumped up the economy with massive monetary infusions in the early 1970's which resulted in the 14% inflation rate by the late 1970's and the eventual recession of the early 1980's as Fed Chairman Volker put on the monetary brakes. Obama should be very very concerned that his re-election has placed him squarely in place to take the blame for the recession that is inevitable prior to the end of his 2nd term.
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