These volatile details matter, but the underlying problem remains unchanged: The economies of Europe and the United States have arrived at the moment when they no longer have any conceivable hope of being able to pay for the huge public commitments they've amassed the past 40 years. This year's "debt crisis" has been building for decades. European Central Bank President Jean-Claude Trichet finished his public statement yesterday by calling on Europe, for the umpteenth time, to do "comprehensive structural reform."Liberals have loved science and what it portended from the demonstrable benefit of rigorous logic applied to meticulous data collection. Where liberals could interfere with economics by means of the political process, however, it was greed and expediency all the way, defended by scurrilous attack on all who attempted to sound the alarm. As is true with all objections to liberal, progressive, socialist, statist, fascist, and/or communist madness and treachery.
. . . President Obama's primary contribution, after he joined the talks, was to insist that the deal include tax increases, of all things, amid high unemployment and weak growth. . . .
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. . . and the Federal Reserve has poured oceans of cash into the markets.
The Keynesians have fired all their ammo, and here we are, going south.
"The Global Rout. The Keynesians have fired all their ammo and here we are." Wall Street Journal, 8/5/11 (emphasis added).