Consider the effect the Tea people have already experienced. They are being hailed as the winners, and derided for their single minded determination to drive the country to ruin. They are hailed as heroes by those who elected them, villains by the legion of talking heads sent forth to destroy them.
You and I both know if they reduce even the dollars scheduled for increase, and increase spending just the same as demanded by baseline budgeting, then long term we may be entering an Economic Winter. (Take a couple minutes to reread that because if you aren’t keeping up then I’m going to lose you and I don’t want to do that.)
If the Tea people gain strength and pick up more seats in the House and Senate, November 2012 (Okay, I’ll take my foot off the brake.), they will potentially overthrow the current leadership and find themselves more in charge of our destiny. Given they are doomed to failure, imagine their success.
They will own the debate. They will point out the folly of Keynesian Economics. They will re-wind history to the closing of the gold window by Nixon in 1971. De Gaulle was sending his naval fleet into New York harbor with a decidedly consistent expectation. He tasked his admirals to carry the notes directly to the window and demand payment in gold. A deal, after all is said and done, a deal.
Back to the Tea people, when they really take their long knives to the stacks and stacks of dollars, the impact on GDP will exacerbate. Imagine a jilted lover, or perhaps, a cheated party to an otherwise legal agreement. The viciousness of the attack cannot be overstated.
By God, in whose name I swore a solemn oath, I will not falter in the performance of what I have been called to do. This the commitment the newly elected former shopkeeper/businessman/public servant/banker (NO!) prays in search of strength to be true to his or her duty.