Somebody Agrees With Me

The following snippet is from a Fortune article where the author advocates being fiscally disciplined. While I believe the short term effects will be more painful than he does because of the credit bubble, I ultimately agree that it is the best long term solution. It is refreshing change from the Keynesian op eds written by those with large stakes in the current system. From Fortune:
For Meltzer, the courageous, damn-the-sages stance that Thatcher took three decades ago should guide President Obama today. "If Obama announced a strategy to deal with the long-term debt and stopped doing things to increase the uncertainty that businesses face, it would do a great deal to stimulate the economy," declares the 82-year old Meltzer.
Meltzer is right, and most of the "experts" -- from Paul Krugman to Ben Bernanke -- are wrong. The best stimulus is a solid, credible plan to radically reduce government spending, starting right now.
To be sure, President Obama frequently advocates shrinking deficits in future years. The problem is that he wants to keep spending heavily today, in what's supposedly a classic Keynesian formula for charging a weak recovery and lowering unemployment.


Anonymous said...

long pcbc @ .7235 and banr @ 2.22

Anonymous said...

Ol Dawg