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| Re: Boehner walks away, gives up on debt negotiations with Obama (814612) | |||
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Re: Boehner walks away, gives up on debt negotiations with Obama |
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Posted by AEM-7AC #901 on Sat Jul 23 00:40:29 2011, in response to Re: Boehner walks away, gives up on debt negotiations with Obama, posted by SelkirkTMO on Sat Jul 23 00:24:57 2011. With the current (and reasonably short term future) interest rates, we should have kept the deficit spending going since government was called upon to substitute for both consumer and corporate borrowingThe problem is that there's way to guarantee that those rates will always be so low in the future which prevents us from properly servicing our debt. Had we not accumulated so much debt during the previous economic cycle, we would have had far more freedom to implement a proper Keynesian approach with a larger and more sustained stimulus. Regardless, we could open up the spigot slightly more in order to promote various infrastructure projects and ensure some degree of support for state and municipal employees, but we don't have the same freedom to go fully dirigiste, especially with bond vultures waiting to go play speculator. |
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