Taking one scenario with another, a seer's lot is not a happy one

["John Gelles" <indexed-savings@xxxxxxxxxxxxx>]

Our most popular pundit-economist writes:

    What will eventually follow failure to raise
    taxes, cut spending and cut imports? Answer:
    "a sharp fall in the dollar and a sharp rise in
    interest rates. In the worst-case scenario, the
    government's access to borrowing will be cut
    off, creating a cash crisis that throws the nation
    into chaos."

Paul Krugman, describing the worst above, fails
to say what the best-case scenario looks like. So
let me paint my own:

    A sharp fall in the dollar compels congress and
    our central bank to finance with low interest (and
    no interest) credit to maintain domestic produc-
    tion, employment and growth.  Tax cuts reduce
    stress on business and ordinary people whose
    productive energies are needed -- not their
    money (which will be will be withheld for
    them as savings if production is too low to
    allow spending at will). There is no cash crisis,
    but there is a general increase in commodity
    prices that brings on general prosperity, especially
    in third world nations. The era of low effective
    demand in the face of technology's power to raise
    supply will be over. World supply of economist-
    accountant-lawyer-bankers, charged to match
    demand to supply and supply to need (or take a
    job in a fast food eatery) will have removed from
    view economist-pundits whose ideas are truly
    half-baked.

John gelles