Dean Baker reminds us of the bigger crisis.

The shutdown and the impending breech of the debt ceiling are crises. But they're not the biggest one we face now...

http://www.cepr.net/...-just-be-confused

I hate to spoil the efforts at building fear and panic, but this is getting more than a bit overblown. Hitting the debt ceiling would undoubtedly be bad news, but an earth-shaking disaster is pretty unlikely. Everyone will get their money, with interest, even if it is a bit late.

The annoying part of the fear story is the implication that somehow things are okay now. We are throwing $1 trillion of potential GDP in the toilet every year because Congress and the President won't approve enough stimulus to get the economy back to full employment. And millions of lives are being ruined because people can't get jobs and earn enough money to raise their kids properly.

The media want us to get all bent out of shape because we could cross the magic line and then suddenly have to pay a risk premium of 5-20 basis points on government debt for years into the future? Sorry, for those of us who know arithmetic that doesn't come close to the disaster we are already seeing.

Yup.

But nothing is going to be done about unemployment and getting the economy growing again until the hostage-taking by the Republicans ends. Here's hoping we manage to muddle through well enough until that happens.

Cheers,
Scott.

Post #382,119 by Another Scott 10/14/13 10:16:14 AM Reply	Dean Baker reminds us of the bigger crisis. The shutdown and the impending breech of the debt ceiling are crises. But they're not the biggest one we face now... http://www.cepr.net/...-just-be-confused I hate to spoil the efforts at building fear and panic, but this is getting more than a bit overblown. Hitting the debt ceiling would undoubtedly be bad news, but an earth-shaking disaster is pretty unlikely. Everyone will get their money, with interest, even if it is a bit late. The annoying part of the fear story is the implication that somehow things are okay now. We are throwing $1 trillion of potential GDP in the toilet every year because Congress and the President won't approve enough stimulus to get the economy back to full employment. And millions of lives are being ruined because people can't get jobs and earn enough money to raise their kids properly. The media want us to get all bent out of shape because we could cross the magic line and then suddenly have to pay a risk premium of 5-20 basis points on government debt for years into the future? Sorry, for those of us who know arithmetic that doesn't come close to the disaster we are already seeing. Yup. But nothing is going to be done about unemployment and getting the economy growing again until the hostage-taking by the Republicans ends. Here's hoping we manage to muddle through well enough until that happens. Cheers, Scott.
Post #382,122 by mmoffitt 10/14/13 10:33:56 AM Reply	I think it is too late. Globalization has made governments irrelevant. The masses in the US have only begun their slide. In the new world paradigm, "Corporations are people, my friend." And those are the only people that count.
Post #382,125 by drook 10/14/13 10:41:52 AM 10/14/13 1:49:25 PM Reply	Until the machines are people, too When the machines go to war it won't be with the people, it will be with the corporations. And when elephants fight, it is the grass that suffers. [edit] tyop -- Drew Edited by drook Oct. 14, 2013, 01:49:25 PM EDT Expand All History
Post #382,170 by Ashton 10/14/13 6:05:07 PM Reply	Nice metaphor, Drook! ;^>
Post #382,137 by boxley 10/14/13 12:22:27 PM Reply	hostage taking by whom? http://news.yahoo.co...ty-133154607.html Any opinions expressed by me are mine alone, posted from my home computer, on my own time as a free American and do not reflect the opinions of any person or company that I have had professional relations with in the past 58 years. meep
Post #382,147 by Another Scott 10/14/13 12:42:35 PM Reply	Republicans say a lot of things that aren't true. Shocking.
Post #382,151 by folkert 10/14/13 3:35:01 PM Reply	No! SOLYNDRA, BENGHAZI, IRS, ACORN... !!11ONE!11! -- greg@gregfolkert.net "No snowflake in an avalanche ever feels responsible." --Stanislaw Jerzy Lec

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