The New York Times' leftist columnist Paul Krugman has garnered some headlines recently for attacking the House Republican alternative budget proposal, the so-called “Roadmap to America's Future,” and its author Paul Ryan as “The Flimflam Man.” Krugman calls Ryan's plan the “audacity of dopes” and claims that it wouldn't bring the budget any further into balance than President Obama's budget.
Treasury Secretary Timothy Geithner’s assurance that the Great Recession is over will undoubtedly convince many Americans that relief is on the way and that they can loosen their belts and get back to business.
Just one week after James Bullard of the St. Louis branch of the Federal Reserve Bank released a paper declaring that “the U.S. is closer to a Japanese-style outcome today than at any time in recent history” (meaning that the United States will likely have decades of economic stagnation, which Bullard blames on "deflation"), the news media has taken up a chorus against the bogeyman of “deflation” to explain the need for further social spending by the government and more debasement of the U.S. dollar (causing consumer prices to rise through inflation).
Item: Speaking in Canada where he was attending the Group of 20 summit, “President Barack Obama said on Sunday he would follow through on a pledge to rein in soaring U.S. budget deficits and said that would involve presenting Americans with ‘some very difficult choices’ next year,” reported Reuters for June 27. The President, continued the wire service, “has said the deficits are a legacy of the Bush administration.”