La Fleur writes:
Speaking of the debt, what is the general consensus here on where the US dollar is headed? There are scary posts on financial sites claiming we’re headed for either hyperinflation or default, and soon. What do you guys think?
I have seen those financial sites she reads. They are all coming from the Populist Right (They are basically the Tea Partiers), and I think they are unnecessarily alarmist. One would do better to read the economists on Counterpunch or Paul Krugman. The real risk? Not inflation and of course not default. But deflation. There is no debt crisis. Bottom line. Our debt is the 3rd lowest in the industrialized world. It’s about 68 Because our debt is so low, deficit hawks (all rightwingers by the way) have decided to add up all of the state, county, municipal and even consumer debt to conclude that our debt is by far the worst in the world. Dishonest accounting? You betcha! I say when debt gets to 100 Japan has the highest debt around at over 200 The result of the bubbles was an economic depression, and the dreaded deflation has had Japan in its grip for 20 years or so. The government has tried everything from 0