(continued from the previous post)
Is there a paper trail telling you that this bunch of people are playing fast and loose with the truth? For example, chief Bush Administration economist and Chair of the Council of Economic Advisers R. Glenn Hubbard--he of the "no evidence" that budget deficits raise interest rates--wrote in the fourth edition of his textbook Money, the Financial System, and the Economy that "by the late 1990s, an emerging federal budget surplus put downward pressure on interest rates." The quote is not out of context. The textbook was published in 2002. If the Bush Administration's chief economist believed only last year the opposite of what the administration is now saying, what are the odds that you should believe them today?
These three principles--is this a newly-invented or -resurrected argument? is this consistent with supply-and-demand? is there a paper trail showing that this was believed before it became politically advantageous to do so--will generally serve you in very good stead.
A poster to the comments adds: "We have moved from "the tax cuts won't cause deficits" to "deficits won't push up interest rates". Any bets on how long before we start hearing that "higher interest rates don't stifle growth"?"