NP but The Confidence Man: Bernanke

[Rational Adult]

"Many of these recommendations are wrong-headed, but Simpson and Bowles
got one thing right: they concluded that long term deficit reduction
should be implemented only after the economy recovered."

I don't think Simpson/Bowles got it right.  The U.S. budget balance deficit is not a relevant data point when not examined relative to non-government sector desires to save.  When the private sector desires to deleveraging debt, the government sector must spend.  If the government sector does not spend, private sector debt increases.  It is simple math.  They net to zero. I guess we could try to look beyond … //smile

//cheers

On Sep 18, 2012, at 8:50 AM, David Morris wrote:

> http://www.ourfuture.org/blog-entry/2012093817/bernankes-wake-call-its-jobs-cliff
> 
> [I]nstead of focusing on steps needed to generate jobs, Washington is
> mired in a debate about austerity—about how to put the squeeze on, not
> how to get the economy going. Bernanke’s action was a cry for the
> villagers to wake up.
> 
> Republican Vice Presidential nominee Paul Ryan recently scorned the
> president for not embracing the recommendations of the co-chairs of
> the Simpson-Bowles Commission (neglecting to note that his vote
> against the recommendations helped block their adoption by the
> Commission). At the Democratic convention, both Bill Clinton and the
> president suggested that deficit reduction should follow the
> principles of the Simpson-Bowles recommendations.
> 
> Many of these recommendations are wrong-headed, but Simpson and Bowles
> got one thing right: they concluded that long term deficit reduction
> should be implemented only after the economy recovered.
> 
> “Don’t disrupt the fragile economic recovery. We need a comprehensive
> plan now to reduce the debt over the long term. But budget cuts should
> start gradually so they don’t interfere with the ongoing economic
> recovery. Growth is essential to restoring fiscal strength and
> balance.”