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The Post Disagrees With Financial Markets

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Friday, 23 December 2011 06:26

In an article discussing House Speaker John Boehner's performance in his job, the Post referred to his negotiations last summer with President Obama over, "the federal government’s swelling debt problem." Newspapers interested in maintaining the separation between the news and opinion pages would have simple referred to the debate over raising the debt ceiling, which is what was at issue.

The debt has risen rapidly because of the recession that followed in the wake of the collapse of the housing bubble. Financial markets do not see the debt as a problem, which we know since they are willing to lend the government huge amounts of money at very low interest rates. There was no reason to interject this sort of editorial comment in a news story.

Comments (2)Add Comment
The Real Lie of the Year 2011
written by Robert Salzberg, December 23, 2011 6:50
The biggest lie of 2011 in the U.S. was that reducing debt was more important than increasing employment.

The biggest lie in the world for 2011 is that financial austerity for countries in Europe would create economic growth.
Federal Debt is Not a Problem at All
written by Paul, December 23, 2011 7:57
Even Bill Gates cannot borrow a trillion dollars at 2% for 10 years with no collateral, but the U.S. government can and does.

Japan's debt to GDP ratio is more than twice ours, yet Japan borrows at lower interest rates and has lower inflation. We could double our debt and still have no problem financing it.

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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.

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