By FITSNews || While the rest of the world has begun to read the handwriting on the wall with respect to the accumulation of unsustainable government debt, U.S. President Barack Obama is urging more “stimulus” spending to prop up what he calls a “fragile” recovery.
Obama made his case for more government spending at last weekend’s G-20 meeting in Toronto. The G-20 is a semi-annual (now annual) meeting of leaders of the world’s twenty largest national economies. G-20 nations comprise 85 percent of the world’s wealth and two-thirds of the global population.
Despite Obama’s pleas for more spending, the G-20 nations (America included) reached an agreement requiring them to cut their annual deficit spending in half by 2013. Keep in mind, they’re not actually cutting government – they’re just agreeing not to grow it quite so fast (assuming they actually keep their word).
Obama’s Treasury Secretary Timothy Geithner specifically cautioned G-20 leaders against prematurely implementing “austerity” measures, while Obama explicitly pleaded for more short-term government spending.
“We can’t all rush to the exits at the same time,” Obama said. “The recovery is still fragile.”
Obama presented a blueprint for American’s compliance with the G-20 deficit reduction pledge, claiming that America would reduce its deficit spending from $1.5 trillion this year to $727 billion in 2013. Of course, Obama neglected to tell his colleagues that under his plan, U.S. deficits would once again rise after that – reaching $1 trillion a year again by 2020.
By We are already the walking dead June 28, 2010 at 6:34 pm
There are many Austrian economists that define inflation as the expansion of the money supply. That differs from Keynesian in that they define inflation as higher prices.
This is an important distinction because Austrians claim that higher prices is a result of inflation. Austrians say there are consequences to “printing” money. Keynesian do not see any consequences for money printing if “properly managed”…like soaking up excess money with interest rate raising…
Ask yourself using common sense which theory you believe to be true. If you think the Austrian theory makes more sense…then you realize that once the genie of inflation has been let out of the bottle there’s no stuffing it back in….and with a tripling of the money supply in 3 years that makes us the “walking dead”.
Have fun with an inflationary recession kiddies. No raises, no jobs, higher prices. Yippee!
By countryboy June 28, 2010 at 9:11 pm
When the chaos comes and society breaks down, do you think people who elected obama, reid, pelosi and their ilk will be the ones rioting, or the one’s who are defending their businesses and homes from the rioters?
By James the Foot Soldier June 29, 2010 at 12:41 am
The Obama Miracle – how to turn a recession into a depression while spending trillions of your grandchildren’s money.
No wonder his approval rating is in the low 40s.
By libertarian June 29, 2010 at 2:10 pm
Can’t rush to the exits at the same time? Should have never been in the big government spending theater to begin with?