We are going to learn how much the US can borrow before it all collapses around our ears. Unless you want to cut Social Security and Medicare, ignore military pensions, sell the national parks, abolish departments like State and Treasury, cut the defense budget in half along with Homeland Security, Education, Labor, the Justice Department and the FBI, etc., we are going to have to live with the $2 trillion deficits. We have to go forward, not knowing where the desert ends. It is as if we are on a trip through a desert and know for certain we don’t have enough water to go back. He asked me what we should do, somehow believing that there has to be an answer. Let me point out that, while the practical results of quantitative easing look similar to modern monetary theory (MMT), the actual results and practice are completely different. I am not persuaded that the US Congress can understand the difference. The European Central Bank is buying anything not nailed down and is muddling through.Ĥ. It is possible I’m being overly pessimistic about the need for a Great Reset which would include national debt. Japan reached 250% debt to GDP a few years ago, since which the Bank of Japan bought around half of total government debt (back of the napkin numbers), and Japan is doing just fine. So, the CBO’s continued 2% average growth forecasts will simply get thrown out the window and the deficits will get worse.ģ. GDP growth in the US is going to increasingly look like Japan and/or Europe, i.e., almost nil.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |