The Official US Politics Thread 'Ron Paul quietly amassing an army of delegates while GOP frontrunners spar' and 'Mitt Romney rebounds against the Santorum surge'

[johnsobas]

Mr Khan said:

johnsobas said:
there is no recovery. Interest rates are at zero and there is a 15 trillion dollar deficit increasing 1.5 trillion per year. Trying to either raise interest rates or trying to bring the yearly deficit to 0 will implode the economy instantly. if you take 1.5 trillion dollars out of the economy that is 10% of the GDP, it will instantly implode. The economy is only being propped up by the fed and foreign governments stupid enough to loan us money. Obama refuses to decrease the deficit because the illusion of the recovering economy would be gone in an instant. If there was a true free market interest rates would have risen ages ago and nobody would have borrowed us any money because we can't pay it back.

Recession-curative fiscal policy is like physical therapy for recovery from a major injury. There is a point at which you pass a threshold and are then able to care for yourself again, and make yourself better under your own power (until the next injury), but if you take the therapy away prematurely, you'll just collapse back to zero. The problem is that you get used to the crutches or the wheelchair, and that is the danger to these solutions, that they are easy to vote for and easy to collapse into, though you are ultimately weaker because of it

this is true, and i'm not sure at what point you think we are in this analogy.  We are far past the point of being able to recover with any type of therapy.  That would have been possible 5-10 years ago maybe.   The recovery isn't happening, the illusion of a recovery is happening at the cost of much bigger consequences in the future, and the longer we keep this going the bigger and bigger the correction is becoming.  I do believe that Obama and the fed "saved us" from a bigger recession in the short term, only to dump us into an even bigger one after he is out of office.  Politicians simply don't care, they think in terms of 4 years time.