Mercury Rising 鳯女

Politics, life, and other things that matter

Archive for August 3rd, 2012

Friday Cat Blogging

Posted by MEC on August 3, 2012

Friday Cat Blogging

Posted in Alexander the Great, Friday Cat Blogging | 4 Comments »

En Lagarde: Why Republicans should be driven from office

Posted by Charles II on August 3, 2012

Dominic Rushe, Le Guardian:

Political infighting over the “fiscal cliff” threatens to wipe out the US’s fragile recovery with “very bad” consequences for the rest of the world, a senior International Monetary Fund economist warned Thursday.

Updating its annual report on the US economy, the IMF said the recovery remained “tepid”, and risks to that recovery had intensified, “including from the worsening of the euro area debt crisis as well as the uncertainty over domestic fiscal plans.”

The IMF is particularly concerned about falling off the fiscal cliff. Unless a deal is struck by 31 December, Bush-era tax breaks will be dropped and a series of draconian spending cuts imposed. The tax rises and cuts to areas including defense could wipe 3.9% off the US’s growth rate next year, according to the congressional budget office.

Or, as I said:

Gridlock is very dangerous. From a narrow economic viewpoint, it would almost be better to have complete Republican control, since they’d continue stimulus through tax cuts while killing the economy through budget cuts. Of course, a couple years later, we’d end up with an enormous debt and a dead economy. But gridlock pretty well guarantees no stimulus either through tax cuts or fiscal measures.

The US does not have an economic problem. It has a political problem, which is to say, Republicans.

But, hey, Lagarde is French, so that makes the IMF irrelevant and slightly gay.

Posted in economy, Republicans as cancer | 4 Comments »

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