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Well, yes. That's the whole point of the government 'stepping up to the plate' and filling the hole left by non spending private sector, only it is leaving a huge government debt behind, and no certainty that the 'recovery' is self sustaining. In fact the latest data suggest it is not ie Philly Fed Manufacturing Index just plunged from 43 to 18! Company margins are non existent.

The problem will be, when this is realised, that they (the US Fed etc) will have spent all the ammo already with QE and will therefore have no choice but to make the hard choices ie cut spending ie pretty much everything really.

The fact that neither party wants to be the one seen to have initiated a recession by cutting spending means that it can & will get much worse very quickly. And it has to be spending cuts as tax income is not sufficient. Under 'the plan' the assumption is that income from personal tax will (needs to) grow by over 50% over the period allowed for the deficit to be contained. This as well as spending cuts of similar draconian proportions.

Just because something seems to be implausible doesn't mean it's not possible.

<blockquote data-quote="Uncle Festivus" data-source="post: 629232" data-attributes="member: 6653">Well, yes. That&#039;s the whole point of the government &#039;stepping up to the plate&#039; and filling the hole left by non spending private sector, only it is leaving a huge government debt behind, and no certainty that the &#039;recovery&#039; is self sustaining. In fact the latest data suggest it is not ie Philly Fed Manufacturing Index just plunged from 43 to 18! Company margins are non existent.The problem will be, when this is realised, that they (the US Fed etc) will have spent all the ammo already with QE and will therefore have no choice but to make the hard choices ie cut spending ie pretty much everything really.The fact that neither party wants to be the one seen to have initiated a recession by cutting spending means that it can &amp; will get much worse very quickly. And it has to be spending cuts as tax income is not sufficient. Under &#039;the plan&#039; the assumption is that income from personal tax will (needs to) grow by over 50% over the period allowed for the deficit to be contained. This as well as spending cuts of similar draconian proportions.Just because something seems to be implausible doesn&#039;t mean it&#039;s not possible.</blockquote>

[QUOTE="Uncle Festivus, post: 629232, member: 6653"] Well, yes. That's the whole point of the government 'stepping up to the plate' and filling the hole left by non spending private sector, only it is leaving a huge government debt behind, and no certainty that the 'recovery' is self sustaining. In fact the latest data suggest it is not ie Philly Fed Manufacturing Index just plunged from 43 to 18! Company margins are non existent. The problem will be, when this is realised, that they (the US Fed etc) will have spent all the ammo already with QE and will therefore have no choice but to make the hard choices ie cut spending ie pretty much everything really. The fact that neither party wants to be the one seen to have initiated a recession by cutting spending means that it can & will get much worse very quickly. And it has to be spending cuts as tax income is not sufficient. Under 'the plan' the assumption is that income from personal tax will (needs to) grow by over 50% over the period allowed for the deficit to be contained. This as well as spending cuts of similar draconian proportions. Just because something seems to be implausible doesn't mean it's not possible. [/QUOTE]

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