These are government numbers for government purposes and have no semblance to reality.
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Is this the big one? Is this the end of the long bubble the Fed has been blowing since 2008? Could be.
By failing to include in its analysis anything to do with the massive unfunded liabilities the government faces, S&P’s announcement becomes totally useless and counterproductive. By failing to inform, it becomes a party to the crime.
Everything’s just fine. Those who are worried about Social Security are just trouble-makers and distractors from the more serious problems we face. Ignore them.
Perhaps you’ve seen this. If not, it’s worth three minutes of your time. Complexity reduced to simplicity.
This is a great reminder about what is possible.
Even a cursory perusal of the CBO report reveals a bias to the upside. Reality, it is feared, is likely to change the outlook, perhaps sooner and most certainly more drastically, than the CBO estimates.
Political gamesmanship, or perhaps “gains”manship as each side tries to outmaneuver the other. They are bickering over who’ll pick up the bar tab on the Titanic.
Sometimes Krugman has to write something in order to meet a deadline, even if it’s false.
As Thomas Jefferson said: “In questions of power, then, let no more be heard of confidence in man, but bind him down from mischief by the chains of the Constitution.”