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Meanwhile, back in Reality Land.
Posted on: July 22, 2016 at 16:35:14 CT
GA Tiger MU
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Hey Sleep, whaddya think?
Regardless of whether the November winner is Hillary or the Donald, there is one thing certain. There will be no functioning government come 2017. Washington will be the site of a deafening and paralyzing political brawl — like none in modern U.S. history, or ever.
The existing budget deficit will end the current year at more than $600 billion. That’s baked into the cake already, based on the recent sharp slowdown in revenue collections. And means that the FY 2016 deficit will be one-third higher than last year’s $450 billion.
Moreover, when the new Congress convenes next February the forward budget projections will make a scary truth suddenly undeniable. That is, the nation is swiftly heading back toward trillion dollar annual deficits under existing policy, even before the impact of a serious recessionary decline.
The reality of rapidly swelling deficits even before enactment of a massive helicopter money fiscal stimulus program will scare the wits out of conservative politicians, and much of the electorate, too. And the prospect that the resulting huge issuance of Treasury bonds will be purchased directly by the Fed will only compound the fright.
What fools like Bernanke haven’t reckoned with is that sheer common sense has not yet been driven from the land. In fact, outside of the groupthink of few dozen Keynesian academics and central bankers, the very idea of helicopter money strikes most sensible people as preposterous, offensive and scary.
Even if Wall Street talks it up, there will be massive, heated, extended and paralyzing debate in Congress and the White House about it for months on end. There is virtually no chance that anything which even remotely resembles the Bernanke version of helicopter money could be enacted into law and become effective before 2018.
Will the boys and girls still in the casino after the upcoming election gong show patiently wait for their next fix from a beltway governance process that is in sheer pandemonium and indefinitely paralyzed?
Regardless of whether the November winner is Hillary or the Donald, there is one thing certain. There will be no functioning government come 2017. Washington will be the site of a deafening and paralyzing political brawl — like none in modern U.S. history, or ever.
The existing budget deficit will end the current year at more than $600 billion. That’s baked into the cake already, based on the recent sharp slowdown in revenue collections. And means that the FY 2016 deficit will be one-third higher than last year’s $450 billion.
Moreover, when the new Congress convenes next February the forward budget projections will make a scary truth suddenly undeniable. That is, the nation is swiftly heading back toward trillion dollar annual deficits under existing policy, even before the impact of a serious recessionary decline.
The reality of rapidly swelling deficits even before enactment of a massive helicopter money fiscal stimulus program will scare the wits out of conservative politicians, and much of the electorate, too. And the prospect that the resulting huge issuance of Treasury bonds will be purchased directly by the Fed will only compound the fright.
What fools like Bernanke haven’t reckoned with is that sheer common sense has not yet been driven from the land. In fact, outside of the groupthink of few dozen Keynesian academics and central bankers, the very idea of helicopter money strikes most sensible people as preposterous, offensive and scary.
Even if Wall Street talks it up, there will be massive, heated, extended and paralyzing debate in Congress and the White House about it for months on end. There is virtually no chance that anything which even remotely resembles the Bernanke version of helicopter money could be enacted into law and become effective before 2018.
Will the boys and girls still in the casino after the upcoming election gong show patiently wait for their next fix from a beltway governance process that is in sheer pandemonium and indefinitely paralyzed?
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Meanwhile, back in Reality Land. - GA Tiger MU - 7/22 16:35:14
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