tag:blogger.com,1999:blog-7713394782406533224.post8385635084852114541..comments2024-03-29T00:07:09.063-04:00Comments on IICS: Why QE3 will completely failLZhttp://www.blogger.com/profile/05082516166181943903noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7713394782406533224.post-82919808837389275232012-09-25T06:43:44.738-04:002012-09-25T06:43:44.738-04:00Factoring in GDP growth creates a more dynamic mod...Factoring in GDP growth creates a more dynamic model, but it is beyond the aim of this post. I only wanted to look at the depth of the problem and only QE3's impact.<br /><br />I do not think the U.S. can grow its way out of it's problems, however, not in a politically feasible way. In order for what you mention to work, it would require a permanent change in political leadership: the election of a Ron Paul type candidate who would reform entitlements, cut military spending and U.S. military involvement around the world, reform the tax code, and reform monetary policy. Based on current trends, the United States is headed in the opposite direction. Democrats do not view Medicare or Obamacare as the problem and Republicans do not view military adventurism as the problem, they view cutting these programs as the problem. Even if growth is achieved, the debt will be increased to fund entitlements and defense spending.LZhttps://www.blogger.com/profile/05082516166181943903noreply@blogger.comtag:blogger.com,1999:blog-7713394782406533224.post-10699617029025913392012-09-17T11:33:24.876-04:002012-09-17T11:33:24.876-04:00Your analysis though useful, ignores the impact th...Your analysis though useful, ignores the impact that growth will have on the ability to carry the debt. The best approach is to carefully monitor the deleveraging but at the same time implement growth strategies including the exploitation of domestic energy sources and at the same time effectively cut the costs of production by careful deregulation and get a sensible tax policy which encourages us production rather than overseas production. The US has the capacity to grow out of its issues in the same way that the business saddled with a lot of debt can grow out if it adopts the correct mix of austerity and growth.Anonymousnoreply@blogger.com