The shutdown is over, but the austerity fight continues

One thing that several people have requested (including Mrs. Rdan) is more easily read material more accessible to non-finance readers, or with our AB audience also people well versed in finance and macro, without dumbing down the issues into ideas that have no context nor links to what actually happens in the world.   We are very used to slogans from our politicians, handy to have in comments perhaps, but no way to actually think.

Yves Smith writes an opening salvo in anticipation of the coming ‘budget talks’, concessions and demands as part of the continuing craziness, and does NOT remain quiet about involving the Dems in the carving up of money sources for political self-interests, which tends to lack national interests even as claimed. What to watch for?? Beware more of the same Grand Bargains and the coming media campaigns. The article she points to is worth reading.

Lifted from Naked Capitalism:

I hope Naked Capitalism readers will check out our new article at Aljazeera, The shutdown is over, but the austerity fight continues. I’ve been writing exclusively at Naked Capitalism for the last two years (the one exception was an article at The New Republic) and as much as it’s extremely difficult for me to find time to do anything additional, I thought Aljazeera could be an attractive venue, since its readership does not overlap much with ours.

One of the good things about Aljazeera is they did not attempt to dumb the argument down (which I’ve had happen at certain publications that will go unnamed) and when some issues needed unpacking to make them more accessible to non-finance readers, they increased the word budget beyond the original limit.

The opening paragraphs:

The bruising battle on Capitol Hill over the debt ceiling is not over. It has simply been postponed until a longer-term budget negotiation. Congress has agreed to fund the government through Jan. 15 and extend its borrowing authority through Feb. 7, at which point the turmoil of the past few weeks might recur.

Although the immediate goal of tea party Republicans in Congress was to defund President Barack Obama’s health care law, it is important not to lose sight of their larger purpose. The recent drama is only the latest battle in a decades-long war by radical conservatives, joined by pro-business interests in both parties, to gut the governmental supports for the middle and lower classes responsible for America’s postwar prosperity. The mystery is why politicians and pundits tout austerity policies despite ample evidence that they are damaging and counterproductive.

The article continues here. Hope you enjoy it!