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Re: Sarmad post# 77231

Monday, 03/09/2009 2:27:46 AM

Monday, March 09, 2009 2:27:46 AM

Post# of 152248
Sarmad, > We have to manage it with counter cyclical spending and taxation. The current leadership understand it finally.

I highly doubt that. Even Obama can't aim any higher than to cut the deficit in half in five years. No wonder; he's starting from a $1.3 trillion deficit handed to him by the previous administration.

Even if he manages to engineer a turnaround in the economy, it will still be propped up by heavy deficit spending. There's nothing "counter-cyclical" about government spending, and no politician ever raises taxes when times are good, unless it's to fund some pet project.

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