> In a sense, it is odd that the power of fiscal policy has come as a surprise – or that it continues to be categorically denied by the German government and the U.S. Tea Party.

Nobody is denying that government spending can induce growth in an economy. What the Germans are saying is that it doesn't generate enough growth to cover the additional spending in the long run.

And that because of their already high debt and ongoing overspending, many countries - the US included - are going against a wall.