Holy shit! This is a libertarian I can agree with. All “fiscal hawks” should read it.

Is inflation out of control? No, not even close. Are our creditors closing our accounts? No, because our creditors know that all we need to do to pay them off is raise taxes or get out of this recession. When growth picks back up deficits will shrink. The deficit is not a problem in the first place. The whole thing is just a ruse.

Meanwhile, unemployment remains sky-high and so do corporate profits. Everything is rosy except for the American worker, and to them fiscal conservatives and pundits like Sullivan say “Austerity Now” like some grotesque mimicry of that Seinfeld episode. All the hand-wringing over structural unemployment and so forth is just cover for supply-side nonsense that’s captured the American psyche from pundit and politician on down. What we are witnessing is a balance-sheet recession and a crisis of demand. Or at least that’s what all the evidence and data points to.