Galbraith: The danger posed by the deficit ‘is zero’

[Jaskalas]

Galbraith: The danger posed by the deficit ‘is zero’

Tell that to the Greeks! So... what should they do to balance the budget, nothing?

 

[heyheybooboo]

The danger posed by a the a deficit is zero (when prudent measures are taken to invest the underlying debt appropriately for the benefit of all citizenry).

Fixed.

These are extraordinary times --- nobody is really happy --- but hopefully history will look kindly upon Bush/Obama/Paulson/Geithner for taking the necessary steps in preventing a complete implosion of the financial markets.

I'd like some serious Wall Street heads to roll for leveraging our ass to the hilt but realize the underlying issues were primarily systemic (with a complete lack of oversight).

The quicker we return to the 'norm' (not the supply-side norm), the better.

The sweet-spot seems to be Fed discretionary and mandatory spending around 18% of GDP. With revenues at 14-15% of GDP and spending at 23% of GDP we have quite a ways to go, but we'll get there in the next 10 years (and we can all bemoan the years of The Great Recession to our grand children).

Once we get Discretionary spending back to 6% and Mandatory (including the remnants of TARP) to around 12%, our (prudent?) leaders will hopefully abide by a solid PayGo with bullet-proof sequestration.





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