Tuesday, August 09, 2016

"Fiscal Stimulus" Is Already Full Blast
Article highlights the stimulus spending already in place by the U.S. .. "Fiscal stimulus is already in the cards as CBO is projecting uninterrupted deficits for the next decade, totaling an additional $9.4t in debt and warns these 'reflect the significant long-term budgetary challenges facing the nation.'" .. but can one grow out of a debt hole by adding more debt? .. "Issuing new debt eats our tomorrows today; eventually it needs to be paid back, thereby lowering future demand. 'Fiscal stimulus' is in the long-run a wash, at best, and pushed too far it can be fatal. Alas, this potentially 'fatal' solution is all the world has left."
LINK HERE to the article

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