We are being bombarded daily with breathy articles about a United States groaning under deficits that surely signal bankruptcy, Social Security checks that eventually won’t clear, and of course a looming financial crisis…Much of this commentary is well written – it certainly is popular – but it is total nonsense. [Let me explain.] Words: 960
April 23rd, 2011 | Posted in Debts/Deficits,Economy | Read More »
Central banking makes it possible for the government to expand the money supply by any amount, at any time deemed necessary and once (hyper)inflation is publicly seen as being the lesser evil of all options available for the government meeting its debt service, it cannot be dismissed out of hand that (hyper)inflation would be the consequence of an unsustainable debt-to-GDP ratio. Words: 982
April 27th, 2010 | Posted in Debts/Deficits,Economy | Read More »