Cutting through the recovery rhetoric
John Kemp at the Guardian asks whether the U.S. and UK can recover from increasing debt levels. Mish offers commentary on Kemp’s analysis. Despite the rhetoric you hear from politicians and pundits, the Fed policies and Treasury initiatives are not sufficient to cope with the massive debt load. For one thing, the debt is in too high a ratio to GDP to be inflated away. Creating government jobs (and watch how much it costs to create a job) is a meaningless gesture in this economy. Tax cuts won’t work because, as the government debt level rises, more taxes will be needed to pay the interest on government debt. The only answer is to raise GDP significantly, and this would mean stopping sending U.S. jobs to India and China. No politician has suggested this. We have. Why won’t politicians propose saving and increasing American jobs in the private sector? Because the socialists want to continue building up Communist China and increasing immigration from Mexico to create a multicultural mass society under their control. They already have their plans in place, and they are not going to deviate from the Communist New World Order to save the U.S. economy.
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