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Is this true? Cinderella really live happily ever after?. There is an assumption, a presumption that any chemical, physical or engineering know it never seems to work. The assumption is that you can modify a variable on the right side, government spending, and everything else to stay, leaving the effect of public spending variable on the left, GDP.You increase public spending to GDP increases The work of jobs seems, people are hired, consumers returning to the mall to buy trunk loads of things, companies make money, increase tax revenues, the deficit disappears, politicians are heroes and always be re-elected.

The markets are full too. For decades, the automotive industry and state governments paid its union employees what they wanted and passed the cost onto consumers. For ten years, the Greek debt debt sold in Germany, but in 2009, this market is saturated. This market is also saturated. The days of people $ 85,000 a year ago to tighten the wheel nuts are behind us, and soon the day of the New York metropolitan drivers earn $ 239,148 a year in Illinois or the U.S. directors $ 11,000,000 pension benefits.

Interest rates remain low due to quantitative easing, which its citizens are not even making money on their bonds. Thus, the government sells securities to buy bonds in China, we buy Chinese garbage at Walmart by the poor truck, China is moving more and more of his people from their land in their cities to make more junk ship in Walmart. Like Japan, they spend the money foolishly, but only lost a few decades return.Finally, assume that bond buyers are not home – I assume that China will buy its bonds. Public spending financed by bonds to buy Chinese, translates into jobs, many jobs, but jobs are in China. China needs to have money to buy bonds, you need to buy something from China who have money to buy bonds. Moreover, investment in factories to keep these people in China, so many changes in unemployment in the United States a temporary structure: when the economy returns to the brand new buildings that are willing to assume all people China and the United States.

It's beginning to look like a car stuck in the mud in Alabama: More on the accelerator, the more the wheels spin and the mud, deeper around, but the car does not move. Of course, the reality will be a mixture of four results, but governments are already so swollen that the range lean heavily toward the situations of failure. Note that I have good historical examples in the three most serious cases, but I have a good historical example of the cause, the case of Cinderella, where politicians and the super-hero. Deficit spending has four possible outcomes: you buy more domestic work (the case of Cinderella), you buy more domestic inflation (USA 1970) Take your citizens savingsof and buy a lost decade (1990-present in Japan) or buy a lot of jobs in China (USA 2000-2010).

We have a few questions. (1) It is true that government stimulus is a waste of time and money? That cut the deficit in Europe, probably as a result mainly of minor importance, the growing deficit in the U.S. will mean new jobs in China and structural unemployment in the U.S.? Is Paul Krugman and Ben Bernanke, are bad, bad, bad, breath, and all expenditure proposed by Bernanke and Krugman will eventually turn wet quantitative easing in stagflation, or purchase securities Chinese Americans and American jobs? .

httpv://www.youtube.com/watch?v=2mRlgQKWlnQ&feature=youtube_gdata

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