Tim & Jim climb the Public Debt Charges Hill
Quote from Tim & Jim climb the Deficit Hill - Terence Corcoran NatPost
"But as time goes on the "incremental fiscal actions will increasingly simply 'crowd out' private sector growth and cause inflation."
Great, so now we have government policy that will crowd out private investment -- the real source of any long-term economic growth and wealth creation -- and monetary and fiscal policy combining to enhance the risk of future inflation."
Summary
All the stimulus (aka bailout/grants/loans/good-money after bad to keep up with the Joneses (even though the Joneses keep changing their mind about what they doing with their bailout money) public money will end up as public debt and public debt charges.
The only way to pay it off (or just annually service it) is with inflation.
Only inflation will undermine the VALUE of the dollar amounts owed by governments (and repayable/servicable by taxpayers) to a level that can be actually paid/serviced by these same taxpayers.
Too bad the taxpayers don't have any clout in the decision making now, or in past bad decisions ... will they ever assume the responsibilities of citizens? or just carry on as tantamount-to-serfs in our tantamount-to-feudal system.
"But as time goes on the "incremental fiscal actions will increasingly simply 'crowd out' private sector growth and cause inflation."
Great, so now we have government policy that will crowd out private investment -- the real source of any long-term economic growth and wealth creation -- and monetary and fiscal policy combining to enhance the risk of future inflation."
Summary
All the stimulus (aka bailout/grants/loans/good-money after bad to keep up with the Joneses (even though the Joneses keep changing their mind about what they doing with their bailout money) public money will end up as public debt and public debt charges.
The only way to pay it off (or just annually service it) is with inflation.
Only inflation will undermine the VALUE of the dollar amounts owed by governments (and repayable/servicable by taxpayers) to a level that can be actually paid/serviced by these same taxpayers.
Too bad the taxpayers don't have any clout in the decision making now, or in past bad decisions ... will they ever assume the responsibilities of citizens? or just carry on as tantamount-to-serfs in our tantamount-to-feudal system.
posted by Walk a Kb or Two in my cassins | 3:23 pm
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