We've got a debt deal and it's just the best thing ever! Check out how super-excited the White House is about the whole thing. If we go to the White House website, we learn that it's a "Win for the Economy and Budget Discipline," that the deal "Removes Cloud of Uncertainty," and that the whole thing's a trip through Bipartisan Happy-Land, where gumdrops grow on sugarplum trees and everything is made wonderful by the magical power of Centrism. Yay!Of course, if we talk to Mean Old Mister Knows-What-the-Hell-He's-Talking-About, then the magic seems to evaporate.
Crooks and Liars:
Nobel Prize winning economist Paul Krugman warned Sunday that proposed spending cuts in a deal to raise the nation's debt ceiling would end up hurting the economy.
"From the perspective of a rational person, we shouldn't even be talking about spending cuts at all now," Krugman told ABC's Christiane Amanpour. "We have nine percent unemployment. These spending cuts are going to worsen unemployment... If you have a situation in which you are permanently going to raise the unemployment rate -- which is what this is going to do -- that's actually going to reduce future revenues."...[CLICK TO READ FULL POST]
