The handing out of entitlements, pensions, deficit spending etc is money in people's hands which gets spent and makes up for a lack of private sector demand. when it comes to reducing the deficit, there will be a good chance of negative GDP growth but eventually the private sector should regain confidence knowing the deficit is under control and there won't be tax hikes to pay for the debt. It is a balancing act and things may need to get worse before they get better. Romney will of course get the blame for any temporary downturn - Ireland is a good case study
As for money printing, the markets are now pre empting it so when it happens, there is less of a kick. Eventually the markets will only rally on printing when there is evidence of real inflation
honestly with such a high percentage of the population from lazy minorities and dysfunctional family values, I cannot see how the us can ever get to a decent level of growth. Sure, the us grew in e previous decade but that was largely because of the artificial housing boom
How does the 1.4 trillion deficit prevent a recession? I'm no economics genius, so please spell it out for me clearly.
The reality doesn't bear out this claim. Even "rumors" or "speculation" about QE sends the market higher. It doesn't really matter what it does to the economy, the market trades higher on QE regardless. If you think otherwise you are severely mistaken! Stocks will go up and go up big if they play the QE card. And everyone on wall street knows that, which is why when probabilities of QE go up (like in the past month or so), stocks already start trading higher.
All the doomsday warnings by "hyperinflation" loons has not been proven correct. If anything there is a risk of deflation, and currently we are paced to be below the inflation target set by the fed.