“…….These experiences demonstrate that during a balance sheet recession, when businesses and households are struggling to deleverage, the correct policy—fiscal stimulus—is exactly the opposite of what is needed under normal circumstances. Active application of stimulus will ultimately minimize the fiscal deficit.
Standard & Poor’s does not understand this and says America’s AAA* rating may be restored if the government succeeds in trimming its deficit by $4trn. The adoption of such a policy by the US government today would plunge the economy into another Great Depression…..”
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he is exactly correct.
it is the lack of understanding of how modern moentary systems actually function and what is actually the money supply and what is actually inflationary that threaten us more than anything.
once again, not too far from the salem witch days, lack of understanding threatens lives and well being.
the tea party may mean well, but their lack of simple understanding of fairly simple things will not serve anybody well.
i agree
DIDO YO…