[cuban leaf]

—US Spending Money Like This We Are Doomed - US Stops Spending Money Like This We Are Doomed —

One of the reasons I moved from Seattle to Kentucky.

One simple illustration: If the FedGov really cut back significantly, it would totally bloat the unemployment numbers since government spending, ultimately, goes to human beings. And the Fedgov is a huge part of our economy. If it shrinks significantly, well, you know...

Also, the economy is like a man who was almost pushed off a cliff and is right now standing on one foot, failing his arms, trying to keep from falling. An increase in interest rates would be like throwing a football at him.

“Nice catch. See you at the bottom, if you survive.”

[jjsheridan5]

One simple illustration: If the FedGov really cut back significantly, it would totally bloat the unemployment numbers since government spending, ultimately, goes to human beings. And the Fedgov is a huge part of our economy. If it shrinks significantly, well, you know...

There will be no significant shrinking of FedGov (at least not voluntarily). One problem is that "significant" is, in this case, getting larger each day. The FedGov has 2 unofficial mandates right now. One is to keep the parasites happy. And second is to keep interest rates low. Nowhere in this equation is there any consideration of longer term implications.

Also, the economy is like a man who was almost pushed off a cliff and is right now standing on one foot, failing his arms, trying to keep from falling. An increase in interest rates would be like throwing a football at him.

Great analogy. The only thing that would make it more apt is if, somehow, all the time he kept himself from falling, the cliff kept getting larger, and the rocks at the bottom even pointier.