We are primed for another recession.
The only thing wrong with the debt and deficit is that they are too small. We need to be increasing government spending, not reducing it.Forbes | Pragmatic Economics
The Coming Recession: How Fiscal Responsibility is Economic Suicide
John T. Harvey | Professor of Economics, Texas Christian University
"As you cut federal spending, the economy–including the private sector–contracts, just as it would if you cut any other kind of spending."
ReplyDeleteI would add that it looks like it also has some destabilizing effects on the entire system due to the resultant reduction in $NFA flow which many in the non-govt sector need to pay at least interest and taxes...
rsp,