Never before has the US entered an economic downturn with a combined federal, state, and local budget deficit anywhere near 8 per cent of GDP. It is a global accident waiting to happen.

The public accounts should be near balance at this stage of the cycle, years into a long economic expansion. If the US tips into a serious recession from such a depraved starting point, the figure could explode into the mid-teens, regardless of who wins the elections in November.

No matter who ends up in the White House, getting the US economy back........

© The Sydney Morning Herald