Washington is a self-pimping spending addict.
The cure is always imposed from without.
The Fedsury is ALREADY printing half of Federal expenditures. It does this by stepping in at the Treasury auctions.
This is the First Financial World War. War has now evolved to the point that it is being fought with central banks and currency.
China has made as many errors as anyone else. They are no tower of strength.
Russia goes through the Kabuki of being an expansionary power, but lacks the young manpower to carry it off. ( Georgia )
The fundamental problem is that we all can’t be retired as early as we’d like. In Europe retirement ages for some employees are astonishingly low.
If you’re 50 you make claim a full pension from the French state railroad.
If you’re 40 you make retire with pension if you are a Greek hairdresser. ( All of that standing, you know. )
And, generally, the French work shorter weeks. 37.5 hours is typical duty at a big French corporation.
BTW, European states impose super-taxes upon wise guys working overtime. It’s not the money, it’s the overtime that’s penalized.
The progression is deflation then hyperinflation. There is no intermediate inflation step. Hyperinflation is currency rejection by the rest of the world.
Because of the unique status of the USA, the flip point should come later than prior hyperinflations.
Our politicians will make it come, none the less. Gross money printing to buy votes is a political act, and is anti-economic.
Summers is a savant idiot. Too much of what he knows to be true just isn’t so.
He’s confused the destruction of our manufacturing advantage with slack capacity. He keeps driving with his eyes on the rear view mirror.
This ultra-high tempo of Federal spending is necessarily taking resources away from private use for the purpose of re-election.
Spending IS taxation when the spender owns the money press. So taxes actually have exploded upward — and the general public is unaware of the fact.
Right now the tax is spread to anyone holding liquidity balances nominated in dollars.
Such an easy out is going to be abused by Congress until events take it over the cliff.
Washington is a self-pimping spending addict.
Detox must therefor hit those receiving the sugar the most. Obviously, that is the Leftist edifice. Big Mama is going to have her purse strings tied. The Drones are going to be de-hived.
