Skip to comments.Looming Big Fiscal Tightening Will Complicate Fed's Exit Plans
Posted on 04/27/2010 6:55:47 AM PDT by Slyscribe
The government and the Federal Reserve are winding down massive stimulus programs as the economy recovers. But can they both exit at the same time without sending the economy back into recession? The Fed has ended most of its emergency lending programs but likely will reiterate Wednesday that it plans to leave interest rates near 0% for "an extended period" to support the budding recovery. Policymakers also will likely take no action on the Fed's
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Those figures seem suspect. I thought the CBO estimated a cummlative $10 trillion budget deficit over the next 10 years. 4.1% in 2012 seems like pie in the sky especially when Obamacare really kicks in.
We are in a depression and any article that starts with such a huge lie in the first sentence, adds insult to injury... a lie such as this absolute lie... makes me discount any other content in this article. I quit reading at the first sentence.Not your fault... just my opinion of this article and author.
And since most states exhausted their unemployment funds some time ago, the Federal borrowing will continue unabated in order to keep propping up unemployment as well as to get their hands on enough money to keep operating day to day.
Those deficit reduction numbers are pure fantasy. All they do is lay the groundwork for more “unexpectedly” bad news further down the road.
Obama will ask for, and get, extraordinary powers.