[ExI] Debt tsunami
brentn at freeshell.org
Mon May 4 10:41:54 UTC 2009
On 4 May, 2009, at 3:13, Rafal Smigrodzki wrote:
> ### Or translated: A 21% increase (i.e. the "change") in budget
> deficit over politics as usual after only 100 days in power. And a
> projected deficit of 9.270 trillion (yes, trillion, not billion) by
> Nine trillion dollars is big money. Not exactly record-breaking as USG
> accounting trickery goes (the title here goes to unfunded SS
> liabilities, about 44 trillion dollars) but still impressive.
This may be exactly the right thing to do. In a deflationary cycle,
you -want- an inflationary fiscal policy to prevent a downward wage-
price spiral. No doubt, I'd be a lot more comfortable with this if
we'd managed to sock more money away in the Clinton-Bush years. You
know, like good businesses/people/gov'ts ought to do - save during the
fat years to prepare for the lean. But with Bush II dumping dollars
into the desert like a madman, alas, it was not to be. We'll have to
hope that the investments we're making now will pay off well enough to
cover the bill later.
Brent Neal, Ph.D.
<brentn at freeshell.org>
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