Zero hedge points out the logical disconnect between GOP rhetoric and fiscal reality:
[W]hile the noise out of Washington is trying to convince us that these deficits are ruinous, the ten year Treasury bond yields we saw yesterday at a stunning 2.97% are telling us that, in fact, they are no problem at all, and that the government can now borrow nearly infinite amounts of money at the lowest interest rates in history.
And what does all that deficit spending get us?
Out of a current projected budget deficit of $1.3 trillion, $700 billion, or 54% comes from the Bush era tax cuts, $320 billion (25%) from a tax revenue fall off caused by the Great Recession, $200 billion from the wars in Iran and Iraq (15%), and $50 billion (4%) is generated by Obama’s recovery measures. The TARP and the bailout of Fannie Mae and Freddie Mac are so small, they don’t even register on the chart. All of the angst, complaining, moaning, blustering, and carping is about the 4%.
So all the sound and fury about austerity and fiscal discipline is just so much bullshit, to distract the focus of public attention from where it would otherwise be directed. If anyone was really serious about cutting federal deficits, there are three big fat juicy targets: repeal the Bush tax cuts, end the pointless occupations, and put Americans back to work by having the government hire them directly.
It’s not rocket science.