Blessed Gridlock?

Cutting spending of any kind during a depression is a bad idea. It simply slows an already slow economy down further.

European Austerity
http://uk.reuters.com/article/idUKTRE67M4OM20100823

Moody’s is telling us that fiscal tightening actually harms the long term economic outlook for European economies.

Ireland
http://www.zerohedge.com/article/europe-prepares-bloodbath-open-after-ireland-lowered-sp-aa-aa-outlook-negative

Ireland had its credit rating cut by S&P because it had to put another $20-something billion of new capital into propping up its insolvent banks. Now 10% of Ireland’s GDP is going to picking up the cost of its banking system.

US Tax Increases
There is no way that increasing taxes here will help the economy. By definition, it will slow down growth.

Post-Election Gridlock
If the Republicans do as expected and gain control of the House and more than 40 seats in the Senate, then they will slow down government spending. This too will hurt the economy and push us closer to Hoover 2.0

Borrow from Tomorrow
The old system is broken. When you are forced to argue that you need to worsen your current finances in order to not worsen your economic outlook, you start to realize that the system fueled by debt needs debt to keep from collapsing.

There is no good outcome. The goal is simply to protect purchasing power from a falling Dollar and future Inflation.