Chillin' out till it needs to be funded
Though exigencies of the cash starved central bankers did let inflation rule as the growth vehicle of choice and a healthy 5% inflation has been more or less stable for US forecasts, there is another hitch on the ride for the next 20 years. Riding shotgun this time is the scourge of all scourges, unknown litany of spending cuts to be unleashed by battle hungry Republicans on the US budget process.
Seemingly from a Goldman report extract/analysis published in the FT yesterday, the Republicans penchant for $61 billion spending cut proposals which are neither hitting the high spending military nor any of the harder entrenched subsidies / giveaways, even the compromise formula with $25 bn in spending cuts, which would logically be all the inefficient welfare spending that does not get the return for the dollar will be chopped off for the sake of the tax cuts and the upcoming healthcare roll back as well. Thus, Obama would just push through the comp
romise and hope nothing more than a 1% cut in growth will happen from these and other coming fun battles in the US Congress. Maybe the Tea Party can throw us a surprise this time?