From AFP:
Economists peddling dire warnings that the world’s number one economy is on the brink of collapse, amid high rates of unemployment and a spiraling public deficit, are flourishing here.
The guru of this doomsday line of thinking may be economist Nouriel Roubini, thrust into the forefront after predicting the chaos wrought by the subprime mortgage crisis and the collapse of the housing bubble.
“The US has run out of bullets,” Roubini told an economic forum in Italy earlier this month. “Any shock at this point can tip you back into recession.”…
My only quibble is with “back in to recession” – I don’t think we ever left. The official statistics keepers appear likely to decide that it ended in July of 2009…but do any of us really feel like it did? Or is it that a mass of printed and borrowed money just gave the US economy a temporary bloom of health? And at the cost of worse problems down the road because of the printed and borrowed money?
New policies are needed – the Keynesian model followed by Obama in emulation of FDR has failed. Well, not really “failed” as in “it worked once, but didn’t this time” but more as a “you frickin’ moron: how could you ever think that stupid idea would work?”. For crying out loud – printing money to pick the pockets of the poor and middle class combined with borrowing money the private economy desperately needs for investment…that is an economic model? Did anyone ever check to see if Keynes was drunk when he thought that up?
Time for a change – it is the only way to avert economic catastrophe. We have only a few years left to get our act together, or we’ll face a generation of economic crisis. Step one comes on November 2nd.
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