Alan Binder says we can do this for 20 years

Gross Government debt

This guy will be proved delusional within the year. Take a look at the volatility of that debt, notice that volatility and level have been increasing for 40 years?  Does anyone really believe that Alan Binder will mesmerize us with new thoughts that reduce the volatility?  Lets add in spreads over time:

 Notice the room to maneuver has been decreasing since the 1980s?  Right now we do not have enough spread to support all levels of transactions when we get any mild downturn.

Where are we now in the cycle?  Well variance in planned output is as large or larger than growth.

 Notice that revisions are of the same order of magnitude as growth, and they are still growing.

So I am a bit confused, how does Alan Binder's version of 20 years of stability come about, we cannot even plan the next year with any accuracy.   How would packing the Senate with Keynesians help, they are still unable to plan out beyond a year?

The long end of yields are dropping into the noise, we have not been able to plan for longer than five years since the crash. This entire economy will focus on the short end of the curve, most of the transaction space, the set -iLog(i), will be crowded into the short end. Fewer and fewer voters will vote for politicians that make promises beyond five years.

This man is a liar if he thinks he can predict ten years under these circumstances.

The folks at Princeton and DC want us to be deluded, but most of the economy is in places like Fresno,CA. From here in Fresno a federal default looks awfully nice. Alan is lucky Fresno has only 1/10 of the average Senate representation, otherwise we would be voting default.