[ExI] Debt tsunami

[Brent Neal]

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
> 2019.
>
> 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.

B


--
Brent Neal, Ph.D.
http://brentn.freeshell.org
<brentn at freeshell.org>