halving the us deficit in 4 years, page-9

Rowingboat:

The only way they are going to achieve that growth rate is by recreating the credit and debt monster that is currently being retired by printing more money to buy more SUVs, build more casinos, etc. There are rumblings that holding interest rates low for as long as they did, the US made a mistake.

However I don't see the Reserve raising interest rates when inflation re-emerges, the Reserve is too married to the Washington DC establishment to administer the bitter medicine when needed.

And even if they do achieve that growth rate, they will still need to cut spending and I don't see that happening with their medicaid revamp and spending binge habits.

Let me put it this way. The federal deficit was ballooning even when the US economy was allegedly booming. Do they seriously believe that they will reduce the deficit while the economy is coming out of a recession?