Home > Economic Update > What a Hellish Decade to come.

What a Hellish Decade to come.

by James B. Driscoll
Monday, August 8, 2011           More bad news for ‘America’s Worst Decade’

Next decade? Toxic politics promises to make economic matters much worse than even today.

“The U.S. economy appears to be coming apart at the seams,” warned Columbia Professor Robert Lieberman earlier this year in “Foreign Affairs.”

“This Fight Ain’t Over: Think the debt ceiling gridlock was ugly? Congress is just getting warmed up. Here are eight more foreign-policy battles right around the corner” when they get back to sinking the economic recovery even deeper this fall.

All punctuated last week by S&P’s downgrade of the U.S. credit rating, as well as the one-day 513-point market drop into a double-dip recession.  Another “Foreign Policy” expert, James Taub, warns of what the “debt-ceiling deal tells us about the Tea Party’s grim vision of American power.”

A disaster ahead, Taub writes: “All Guns, No Butter … depleting the national treasury to pay for the military … when many Americans want to reduce the role of government at home and especially abroad, the debt deal just concluded is likely to preserve the country’s hypertrophied defense budget, at least if congressional Republicans get their way.”

And Mitch McConnell, the GOP’s Darth Vader, is doing just that, doubling down on his vow to make certain Obama is a one-term president, intentionally ignoring the collateral damage, killing economic recovery.

How? Ol’ Mitch is already sabotaging the new Congressional “Debt Super-Committee,” vowing to appoint only Republicans who have signed Grover Norquist’s “no new taxes” pledge.

Expect more deadlocks as economists warn that recovery is impossible without new revenues.

But it’s beyond toxic non-democratic pledges. America really is “coming apart at the seams.” Both parties: Dems for lack of strong leadership. The GOP and the Tea Party with their bizarre Shumpeterian conviction that destroying the economy is the only way to save America and pave the way for a revival of their anarchistic free market Reaganomics.

Political Wars Sabotage Economy

Yes folks, our politicians really are out of control, utterly unable to manage the economy. They’re irrational, and worse, clueless and myopic in economics. No surprise the market crashed 513 points one day last week and 635 points on Monday, for the DOW to close at 10,809,89.   Nor that pundits are pointing to high tech multiples, warning of a new dot-com crash and double-dip recession. Warning of a collapse in commodities, in emerging markets and endless debt problems for Europe.   Warning, in short, that we’re headed into a perfect storm rivaling the disastrous political insanity of the 1930s that prolonged the depression, driving the economy into far reaching global problems that added fuel to an irrational zeitgeist and world war.   And more.

US is sinking - we are in a recession!

Double - Dip Recession

 

 

 

 

 

 

 

 

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