The Infinite Dream Of Crude Keynesian Stimulus

Many foreign observers look at the US budget shenanigans with confusion and dismay, wondering how a country that seems to have it all can manage its fiscal affairs so chaotically. The root problem is not just a hugely elevated level of public debt, or a patently unsustainable trajectory for old age entitlements. It is an electorate deeply divided over the direction of government, with differences compounded by changing demographics and sustained sluggish growth. It is hard to escape the notion that today’s budget battles are but a skirmish in a much longer-term war that won’t be settled soon.

Read more: http://www.zerohedge.com/news/2013-01-30/ken-aint-different-rogoff-crushes-infinite-dream-crude-keynesian-stimulus