Two big ifs may happen this week: If Democrats and the President agree to large spending cuts over the next two years as part of the debt ceiling charade, and Know Nothings nominate someone who isn’t a total clown (that would be someone other than those who have already announced):
1) The economy will go back into recession by the end of this year.
2) Unemployment again will approach 10%.
3) President Obama will be a one-term President.
4) Democrats could lose both houses of Congress and the White House in 2012.
Bottom line: so long as we are ruled by complete and utter idiots, there’s little prospect of economic recovery. On the other hand, complete and utter idiocy is all that’s on offer.
It’s a tragedy for the country that our leaders seem totally oblivious to the crushing reality being experienced by millions of Americans.
We need a very large jobs program and at least $2 trillion in additional spending to make up for the loss of demand and the output gap.
The alternative is another decade or more of stagnation and the end of America’s predominant position in world affairs.
Gorilla says: “Insanity is not a winning platform for the Democratic Party!”