I was happy to see another guy that gets it. It's a shame clueless Kudlow doesn't it. Take a look at this interview with former Reagan budget director Dave Stockton.
The fiscal math doesn't work and Dave Stockton brilliantly describes why it's impossible to grow our way out of this via tax cuts and economic growth. AS he explains: Our spending policy is unsustainable and it's going to fail if we don't rapidly cut spending and increase revenues.
Stockton called the last 10-15 years a "Phoney Boom". I couldn't agree more.
Kudlow repeatedly tried to put David on the defense and the guy didn't blink as he shut down ALL of Kudlow's attacks one by one.
Kudlow consistently found himself speechless as he failed to come up with any logical flaws in Dave's brilliant thesis.
It should be noted that Dave Stockton was key part of the economic team that got things turned around in the early '80's via tax and budget cuts during the Reagan years. The fact that he is on the opposite side of the tax arguement is worth noting.
One by one everyone is slowly coming to the same conclusion: Stimulus spending has been proven to be a catastrophic failure. Austerity and managing the budget is our only path back to prosperity.
It's going to be a very painful road to get there but I see no ther way out and it appears many are also starting to think we need to make some adjustments.
Let's hope we start making the tough choices like letting the insolvent fail before this country goes down the tubes.
We need to open up all of the balance sheets and get back to sound accounting standards. This economy is going nowhere until we make these changes. I don't care what the market does in the short term because its meaningless in the long run because the current system is unsustainable.
Our financial system has been run like a Ponzi scheme for the last 30 years and we have run out of suckers to sell to.