Alphabet Soup vs CBOs Long Term Outlook

In one corner we’ve got BeachBoys front man suggesting we’re not YET embracing of New Normal, nearly ENOUGH:

It is this lack of global aggregate demand – resulting from too much debt in parts of the global economy and not enough in others – that is the essence of the problem, which only economists with names beginning in R seem to understand …

Alphabet Soup – Bill Gross, PIMCO, July 2010

In another corner, we’ve got CBO suggesting deficits are going to improve based on growth:

As the economy recovers and the policies adopted to counteract the recession and the financial turmoil phase out, budget deficits will probably decline markedly in the next few years. But over the long term, the budget outlook is daunting.

CBO Long Term Budget Outlook – June 2010

Perhaps CBO should oughtta flip on the radio once and awhile and listen to the BeachBoys a bit, eh? Better yet, maybe they oughtta renew subscriptions to econ rags that have authors that begin with the letter R …

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