The New Big Picture

[Geee]

American Spectator:


The net net of these countervailing forces is hard to determine. The best guess is that there will be some real recovery over the next year. But the economy is more likely to turn down as we enter into 2012 and the Obama negatives gather force. If inflation does start to accelerate, another recession a year or two later will be inevitable, depending on when the Fed decides the inflation is getting out of control and has to be stopped. Obama's Back to the Future economics will then have succeeded in fully restoring the 1970s.

Shut the Damn Thing Down

Which brings us back to Paul Ryan. The ball is now in his court to produce a dramatic, shock therapy budget, similar to what Chris Christie did in New Jersey and Bob O'Donnell did in Virginia.

The Republicans promised to cut $100 billion in the first year. But the grassroots is already restless over the spending and other deficit increasing ornaments in the tax deal compromise. Ryan and the House Republicans have to understand the political moment.

What they need is a budget that cuts at least the $100 billion promised, plus enough to offset all the tax deal spending increases as well. In fact, Ryan's plan to take every budget line item except Social Security, Medicare, and Medicaid back to 2008 must be the minimum, more than offsetting the tax deal spending and other tax credit garbage. I still prefer going back to 2007. I can't think of any reason why not.

This is the political moment. Ryan's budget must inspire the grassroots. I am not just talking sound economics here. This is sound, must do politics as well. The Washington establishment does not remotely understand today's grassroots sentiment. America would cheer goring outdated oxen like HUD, farm subsidies, the Departments of Energy and Commerce. How about block granting the whole Department of Education back to the states?

[nickydog]

Wow -- this guy really laid it on the line. Interesting comments, too.