He is more hopeful his ideas will gain a following in the U.S., noting Fed Chairman Ben S. Bernanke has read his book and is warning against premature fiscal consolidation as $600 billion in government spending cuts and tax increases loom unless the law is changed.
“If they’re not careful, the U.S. could fall off the fiscal cliff,” he said, estimating it amounts to 3 percent of GDP, the same as Japan’s 1997 budget cuts.Bloomberg
Europe Dispensing Wrong Fiscal Medicine in Koo Warning
Simon Kennedy
(h/t Yves Smith at Naked Capitalism)
1 comment:
The USA is really not following such a stampede off the cliff.
Maybe Bernanke is really helping EU go to the cliff, because he knows he can stop on a dime and watch them fall off.
In other words, he will look at the cuts but then pass over the budget cuts while EU will implement the cuts.
That is not genuine but he will be able to point out the uselessness of cuts after everyone sees EU go down the tubes first since EU is so righteous with their aversion to our "krass keynesian economics."
even though they had a 600 billion Euro stimulus back in early 2009 but only used for saving the Northern banks.
Post a Comment