Tuesday, September 08, 2009

Comment on The Belmont Club
"Duty of debt"

The bulk of the expenditures that the government assumed the Stimulus debt for are not scheduled until next year. The idea seems to be that Obama wants to use it for walking around $Billions for Acorn etc. before the election. Why can't Congress just rescind the unspent money, sell the improperly seized auto companies, cut government pay by 20% and watch the deficit shrink? This is another manufactured crisis. If the Republicans filibuster then the Democrats will have to cut spending and once the plug is lifter then the tub will begin to empty. A sounder policy isn't even very radical. Europe of all places has followed a more prudent policy then the US has and is seeing better results.

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