-——I can’t write an equation to determine at what interest rates the Feds would cease borrowing-——
They don’t call economics the black art for nothing.
In my mind at some point the art overcomes the science. The borrowing ceases when the building is on fire and the doors are being knocked down.
-——Borrowing is a function of inflation.-——
I would argue this factor is incorrect. It seems to me that since inflation relates to the increasing magnitude of the debt, the borrowing that increases the debt is at root a cause of the inflation.
I am heavily influenced by one source “The Power of Gold, the History of an Obsession” by Peter L Bernstien. It is the story of gold and governmental problems since nearly the beginning of recorded history. It is very very interesting and relates the actions and problems of just about any body who was anybody.
Having listened to it several times as I travel I came to believe there is course called Inflation 101 that is part of the course of study for all young princes that would be king. Many get in debt and have troubles similar to those we are in now. The solution is always the same since very early on. Cheapen the money. That is the tried and true.
I have almost concluded that Obama has saved the inflation for the next prince to deal with. He sees his job as raping the treasury and running up the debt as far as he can. Let the next SOB worry about what to do with the debt.
Per Inflation 101, there will be inflation to reduce the debt. The question is only when
Per Inflation 101, there will be inflation to reduce the debt. The question is only when
There are a lot of scenarios. Personally (if we are lucky) I think we might follow a variation of what happened to the USSR. It went out of business and power went back to it’s satellite countries.
There is a storm coming and no safe harbour.