Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

I don't think we have a deficit time bomb, in the early 90' doomsters were talking about a $13 Trillion deficits by the turn of the century, all they got were nice book sales. Once the economy picks up, revenues should start and catch up again with expenses. Right now, if they really wanted to "junp start" the economy, they should have a "bolus" of six months or so of $300 B deficit (about 6% of GDP), best IMTO, as an exemption of the first $15,000 (maybe increase the ceiling by the same $15,000 to partially compensate) of Payroll taxes to individual employees (all that money will end up back as additional demand), then phase back in the relaxation over a period of two years (to avoid a reverse shock).

Zeev