After 30 years of fiscal recklessness, with the Clinton Presidency period of responsibility, no doubt exists that the USA has a long- term debt problem. That problem becomes devastating without economic growth. paying down the debt in a stagnant or shrinking economy will not happen.
And to make matters worse since 2007, we have had a job crisis, with falling or weak demand. The job crisis is real and now.
Oil and stock markets gave a big thumbs down to the debt deal, reading it as a sign that austerity now ruled and economic growth and stimulating demand were secondary priorities.
Yesterday the markets signaled that the US may well tip into recession. That will make all problems worse, including the deficit and debt.
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