[sickoflibs]

RE :” This is where your problem begins. While government deficits have varied over time, during the 2000 decade they became both embedded in the economy and at a high and continuing level of about 4-5% of GDP. That is, the so-called “recovery” in 2003-2007 was false; it did not consist of organic demand from the marketplace, but rather it consisted of government's fraudulently inflated demand. Contrast this with the 1990s when private demand rose fast enough that the government was able to slowly withdraw stimulus via deficit spending, to the point that it actually approached zero! That's REAL economic growth......The Obama administration estimates budget deficits will total $5.1 trillion over five years and hit a record $1.6 trillion in the year ending Sept. 30. The $1.4 trillion deficit in 2009 was equal to 9.9 percent of gross domestic product, the largest share since the end of the World War II. ...That cannot happen without the economy undergoing the very adjustment in matching of output and final private demand that the government has spent ten years trying to avoid.

This is the ugly truth that Bernanke doesn't want to speak of, but he knows it to be true. But neither he, nor the government budget folks, are willing to come out and tell the people the truth - since 2003 we have managed to compound a 58% distortion to our $14 trillion GDP!

To say that the adjustment occasioned by withdrawal of that support would be catastrophic would be the understatement of the year. We never got anywhere near this level of distortion in the 1920s and 30s - the distortion reached about 25%, top to bottom. The adjustment produced what we call The Great Depression.”

Look like we are following the Greece model of bankrupting the country. Go back to 2008 when the two parties picked two liars to tell us how more candy(debt) would fix our spending and debt problems magically, and the bigger spender and liar (Obama) won. Now he has hired a national debt commission to tell us the bad news, we really will have to pay for his (as well as Bush's) gross and wasteful spending, something he repeatedly told us wouldnt happen. They promised us it was free (to us.)

[stephenjohnbanker]

” Look like we are following the Greece model of bankrupting the country. Go back to 2008 when the two parties picked two liars to tell us how more candy(debt) would fix our spending and debt problems magically, and the bigger spender and liar (Obama) won. Now he has hired a national debt commission to tell us the bad news, we really will have to pay for his (as well as Bush’s) gross and wasteful spending, something he repeatedly told us wouldnt happen. They promised us it was free (to us.) “

Bailing out Greece won’t help them. Their insane retirement pay will wipe them out again.

[DoughtyOne]

It’s still my opinion that moving most of our manufacturing offshore was a suicide move. Number one, it cut good paying jobs out from under the U.S. public, and it gave China the income stream to grow into a bonafied global threat.