Cut Spending or Raise Taxes: Veronique de Rugy weighs in with some FACTS: What a concept!

 This is a breath of fresh air.  Listening to the Debt Ceiling debates has been like sitting in a steam room at the Y with a bunch of guys that went to Wurstfest last night.

The Facts About Spending Cuts, the Debt, and the GDP

Separating economic myths from economic truths

Veronique de Rugy | July 29, 2011

An excerpt from the article:

Raising the debt limit might put off a downgrade disaster in August, but that still isn’t enough—as Standard & Poor’s recent warning made clear. Perhaps the most important shot not heard around the world was S&P’s other admonition: Namely, that the U.S. bond rating will be downgraded in three months, if not sooner, unless we do something about government spending. Beyond raising the debt limit, S&P laid out clear criteria for avoiding a downgrade: 1) reduce the debt by about $4 trillion; 2) agree to a credible plan within three months; and 3) guarantee that this newfound fiscal discipline will actually stick.

Even the Fed thinks Keynes is Dead: White House holding Seance!

The Federal Debt: Too Little Revenue or Too Much Spending

by Daniel L. Thornton and Kevin L. Kliesen

in Federal Reserve Bank of St. Louis Economic Synopses, 2011-07-07 2011, No. 20

“The rise in the national debt... is entirely a consequence of the federal government’s increase of expenditures without an offsetting increase in revenues. “

Read the whole article: http://research.stlouisfed.org/publications/es/article/8856