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Governing without deficit spending is like running a business without business loans.
Sometimes a business has a profit to reinvest into the company, other times they need to borrow money to do business. Either way, they don't like the idea of derailing their long-term plans because of capital flow problems. They don't close down or hobble themselves simply because the money isn't there at the moment. They take out loans and pay them down once they do have the cash flow.
Governments aren't that much different when it comes to capital flows. The issue is that America has had a difficult time lately. As far as I know, however, America still has a AAA bond rating. It's not that they can't pay their debt; it's that they're not. Bush had a chance to pay it down, but he blew it...on warfare.
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Knowing that death is certain and that the time of death is uncertain, what's the most important thing?
—Bhikkhuni Pema Chödrön
Humankind cannot bear very much reality.
—From "Burnt Norton," Four Quartets (1936), T. S. Eliot
Last edited by Baraka_Guru; 09-16-2010 at 02:34 PM..
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