Friday, February 13, 2009

A modest proposal to solve the US financial/economic crisis


Niki said...

You can't be serious ... The US can't solve their problems at the cost of the entire world again. Who is ever going to lend you money again, or deal with you? To the contrary: I think this administration knows exactly that this time is about admitting failure, defining your new more realistic place in the world, and trying to resolve matters in cooperation with the others.

Ken said...

Sadly it can. The political will to do it is not there but once US unemployment goes above 9.5% the political will to continue to subsidize bringing 300 million people out of poverty in the rest of the world by running an $800 billion trade deficit will vanish and protectionism will return. I think the political pressure to export the recession will be unstoppable. I don't think this is a good thing for America in the long term or for the world on any time horizon. It's just what I think will happen.