From the article:
“The US annual budget deficit has almost tripled under Obama, from $450bn in 2008 to $1,200bn this year.”
“America’s national debt is now around $16,000bn, two-thirds higher than when Obama was first elected. In 2008, US government debt was 70pc of GDP. Now it is 102pc.”
“Debt growth at that pace simply cannot go on.”
“If fiscal and monetary stimulus worked, Japan wouldn’t have spent the past 20 years in and out of recession and now be shouldering a debt to GDP ratio of 250pc.”
“If printing money worked, Zimbabwe would be in the G7.”
– The US ‘cliff’ – one small part of a huge debt crisis (Telegraph, Dec 29, 2012):
So here we are, at the turn of the year, with the global economy tottering on the edge of America’s fiscal cliff.
What’s kept springing to my mind over the holiday season is the final scene of The Italian Job – the iconic 1969 original, not the tacky 2003 remake.
“Hang on a minute, lads,” says heistmaster-in-chief, Charlie Croker, as he and his merry band of crooks balance precariously in a bus on the edge of an Alpine cliff. “I’ve got a great idea.”
The Italian Job’s cliff-hanger finale is all make-believe. A brilliant film ends, we marvel at Michael Caine’s acting genius, the credits roll and then we get up and make some tea.
Real-world predicaments aren’t so easy.
Continue reading »
Tags: Barack Obama, Ben Bernanke, Bonds, Debt, Fed, Federal Reserve, Global News, Government, Keynesianism, Mitt Romney, Obama administration, Paul Krugman, Quantitative Easing, U.S.