Salon and Robert Reicht on unemployment and debt

Robert Reicht on unemployment/debt

 

Here's the challenge.  When times were good, the government failed to pay down debt, and instead kept spending, federal/state/city the budgets were written and the money spent.  The dicipline to pay back the debt seems to be missing.

 

I agree that unemployment will continue to rise.

 

The challenge with the US Fed being able to keep buying up product in order to bring back the economy is that in a global network, the fed doesn't have enough money.  The same way a central banker can't successfully maniuplate a floating currency.  I can't bring myself to understand how a single government can pull up a global economy.  Maybe I can't see the entire picture, but it's not just an American or China scenario. The ties of intercorrelated commerce are too numerous to try and cut, and too dense to avoid.

 

This means I have to agree with his analysis that politics and events are going to get much uglier in the coming year.