ROFLMAO

Center for Freedom and Prosperity Foundation is a shill group for off shore financial tax shelters.

The Laffer curve was laughed at by most economists when it was presented in 1981. It doesn't for example apply to highly taxed societies in Scandinavia which still manage to have high productivity rates.

Keynesian economics stipulates an inducement of investment, in 2 key ways that is always glossed over by such critics it is the reduction in INTEREST RATES and the government expenditure in INFRASTRUCTURE. It hasn't been used in this form for decades.

However it is common to lump in all government expenditure as a form of Keynesian economics, because then you can create stupid videos like this.

Well we'll see what happens, interest rates are extremely low and they are working furiously to pass infrastructure spending. I'm leaning toward the other side of the trade as I'm not optimistic. In Keynes' time we had savings, production and we owned our own debt. Much of the spending is going to be financed by China and Japan unless congress raises taxes. Since so much of our debt is owned by foreigners, the big question going forward is, "How long will the rest of the world have patience with us?"

The recession is going to hit hard anyway, its impossible to prevent a downturn for the next 2 to 3 years (I think more like 5 but am a cynic).

The thing is the rest of the world is just as linked as we are, globalization means that China cannot afford to default on US debt and request the money back, its within its own interest to actually support a US recover so its own export business doesn't peter out as well. China holds huge US dollar reserves, it has been losing value with each downward interest rate point.

I agree we will see how the Whitehouse will deal with this crisis. I don't think the plan goes far enough in combating this situation. The effects will hit hard either way. But this is what happens with trying to run the economy off bubble markets.

Moving this video to cdominus's personal queue. It failed to receive enough votes to get sifted up to the front page within 2 days.

And what happens if japan buys up all the goods of china instead of loaning us the money to. In other words, if china finds different output markets it can afford to let us fail.