"He could explain the real problem is the imbalances that were created by an over-valued dollar which in turn made U.S. goods uncompetitive in world markets and led to an enormous trade deficit. He could then tell the public that he would push policies that will restore full employment but which will in the short-run to lead higher deficits.

"However, President Obama seems unwilling to rise to this challenge and instead is prepared to adopt positions that he knows are bad policy in order to assuage the deficit hawks. This was precisely the same mistake that President Clinton made in his first term. While this bought him enough political space that he was able to get re-elected, he left office with few important accomplishments. In fact, by reinforcing the deficit nonsense and putting the country on a course of bubble-driven growth (stock bubble in his years), Clinton really set the stage for the current crisis. It seems that President Obama may now be prepared to embark on a similar path that may offer short-term political benefits, but imposes enormous costs on the country."

Baker also wrote this, something that should give the president pause regarding a fiscal deficit commission, but won't as the president is a DINO corporatist Wall Streeter:

"Next week dozens of honchos around Washington are going to be gathering to try to devise ways to ensure that ordinary working people pay for their incompetent management of the economy. This effort will pass under the guise of "fiscal responsibility."

"The basic story of course is quite simple. Geniuses like Ben Bernanke, Alan Greenspan and the rest of the country's top economists and policymakers somehow either could not see an $8 trillion housing bubble or just thought it was cute.

"When it collapsed and brought down the economy, as every competent economist knew it would, it also created a serious budget problem. Now, these elites are convening special sessions devoted to fiscal responsibility in which they will devise schemes to take away the Social Security benefits that workers have already paid for and to cut Medicare. Invariably they will praise themselves for having the courage to take part in these Wall Street funded sessions to plot ways to take money from ordinary workers. And, they wonder why people hate Washington."