A great presentation that demonstrates that deficit hawkery at this point in the US is insane

[swag]

http://read.bi/cPSg5q

With so much talk about austerity vs. stimulus, we thought it was worth revisiting Nomura Chief Economist Richard Koo's speech to George Soros' Institute for New Economic Thinking from earlier this year.

It's required reading if you want to understand a balance sheet recession, and among other things it notes that at least in the Japan scenario, the weakest periods of exploding debts came AFTER periods of attempted austerity, in direct contravention of what the anti-stimulus crowd would suggest.

Click here to see presentation:

http://www.businessinsider.com/richard-koo-austerity-2010-7/-1

[sandnsea]

1. There is no Austerity vs Stimulus

There is a commission to cut pork so there is money to direct to the programs needed.

There is no across the board cut. There is a spending cap which requires depts to look at their programs and discern pork from progress.

That's what most Americans voted for.

The economy was in a free-fall in Nov 2008. We voted for someone who would look out for the people, which Obama did with the first stimulus and continues to do. But at the same time, we voted for someone to get a handle on the budget, which Obama is working on.

[Hannah Bell]

2. cut "pork"? lol. the pork will stay. it's the safety net that's going to take the hit,

the personnel involved & their commentary thus far is enough to make that clear.

the most "liberal", "pro-labor" person on the commission wants to put social security money into the stock market.