"Reagan proved that deficits don't matter" - Dick Cheney
"The Balance of our Forraign Trade is The Rule of Our Treasure"
One of these countries doesn't have a History Channel anymore:
Dark-Bid via ZH:
At one time, when adults were still running the country, Fiscal and Monetary policy were competing ideologies for how to moderate recessions. One was the counter-cyclical use of government spending, the other was counter-cyclical expansion of the money supply.
Then, when the Supply Side Casinonomic Circus showed up in 1980, proclaiming that tax cuts pay for themselves, all hell broke loose. From that point forward, fiscal and monetary policy were both used full time, non-stop at their highest level possible to paper over the chasmic Walmart trade deficit the NeoCons had created. Monetary policy essentially financed fiscal policy through recessions and expansions.
That chicanery compounded Federal debt at 9% annually, culminating in "Neo-Keynesian" George W. Bush funding two military blunders and a tax cut for the ultra-wealthy at 1%, compliments of 9/11 Corporate Shock Doctrine aka. outsourcing of the economy while everyone is watching foreigners being bombed on CNN. All of which collapsed with extreme dislocation in 2008.
Not to be outdone by their own stupidity, the Idiocracy dusted itself off and decided that 0% would fix what 1% had wrought, and in addition, an immediate doubling in debt was in order. Meaning that debt which had taken 226 years to accumulate was doubled in a mere 7 years. Yes, you read that right. Obamanomics, courtesy of Paul Krugman. Econo-dunce extraordinaire.
Voila, and here we are with Fiscal and Monetary policy both still at Full Retard. ex-economy.
Were it not for massive ongoing deficits, the U.S. economy would have been in recession these past 7 years. The term 'recession' has been rendered totally meaningless by Econo-dunces...
GDP - Debt (Year over year change)
"It was a bad time to be sniffing glue"
Carry trades are warning that we are at the end of another economic cycle with interest rates stuck at 0%:
Copper with global GDP growth rate
This is the first "recovery" in U.S. history wherein BOTH Fiscal and Monetary have not been normalized. Meaning it's a colossal widely embraced lie.
NeoCons can take heart that this will all have an "Exceptional" ending. At which point their place in history will be duly sealed. Their role was to bring this all down.
