Will The Obama Tax Cut Deal Save The Economy? NO!!
Just think about it. In your own household, if you and your wife volunteered to take less pay from your employers and at the same time you went out and dramatically increased your spending, what would happen?
It would be a financial disaster of course.
Well, that is what the U.S. government is doing. They have decided that they are going to have tax cuts and they are going to significantly raise spending too.
That may be fine in a fantasy world where you can borrow an infinite amount of money at an interest rate that is next to zero, but in the real world that is a recipe for disaster.
Already the rest of the world has been showing signs that they are starting to lose confidence in U.S. Treasuries. In fact, U.S. Treasury yields have spiked substantially over recent weeks. The rest of the world was not amused at all by the "quantitative easing 2" program initiated by the Federal Reserve in November, and now they are becoming quite concerned that we don't seem to care much about controlling our rapidly expanding national debt at all.
Link:
http://endoftheamericandream.com/archives/will-the-obama-tax-cut-deal-save-the-economy-no
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