It sounds so easy for him to say it, but really, the political class has been saying it without saying it anyway. Whether it's the banker bailouts without strings, profitable Fortune 500 companies paying no taxes, the unstoppable military industrial complex that demands war and spending without question, or the Ben Bernanke quantitative easing 1, 2 or 3, the policies have all pointed in this direction. These policies offer very little for the middle class but they've been a bumper crop of riches for the rich. The Bush economist may be a jerk but at least he's honest, unlike the rest of the political class that won't say this. CNBC:
“Will the US go into technical default? This is quite possible,” Philippa Malmgren, a former economic advisor to George W Bush and the president and founder of Principalis Asset Management told CNBC on Thursday.
While this is a serious problem in Malmgren’s view, she said the solution is easy enough.
“Yes it is a serious problem but the US can easily fix it by having everybody work 10 years longer which they'll do anyway,” she said.
Any recovery of the US economy will be based primarily on manufacturing, agriculture and innovation in Malmgren’s view but the banks need to watch out if they continue to refuse to lend to American businesses and consumers.
