Jim DeMint gets the gold star for the day. [Ben Bernanke’s Congressional hearing today.]
It probably just went over the head of everyone in the room on the Joint Economic Committee, but Bernanke didn’t miss it.
Paraphrased, Jim DeMint said: If you stop the deficit spending the economy craters (~10% of GDP) and if you continue doing it the economy will crater (since you will eventually hit the wall and be forced to stop, and it will be even worse.)
In other words, the policies being promulgated are not and cannot be effective.
Anyone who claims that nobody in Congress “gets it” is wrong. There are a few people who do, Jim DeMint being one of them.
But notice that nobody is talking about taking our medicine and ceasing the lies — the puerile and false claim that we can “recover” from a debt addiction through yet more debt.
That’s mathematically impossible, DeMint knows it, and he’s said it in public.
Now let’s see if anyone — such as the Libertarian Presidential Candidate — will get out in front of this issue and start talking about both what needs to be done and what we can, and cannot, do to mitigate that which must come.