Reply #4: I agree [View All]

[Hawkowl]

That is why all this "concern" with the deficit is bullshit. The main concern with deficit spending is that it will start a hyper-inflationary cycle like Wiemar Germany or Zimbabwe or Argentina. Since people seem to be avoiding spending at any cost, traditional inflation and thus deficits appear to be irrelevant.

Government is going to have to employ people directly and LEND directly to small business to get this economy going. Even with all that, as a poster referenced below, the consumption economy is in all likelihood as dead as mercantilism. Japan is a good example of an economy's predisposition to save rather than consume and the resultant decline in growth.

The obsession on growth will have to be eradicated. Who gives a flying rat's ass if the GDP is growing 5% per annum with a 12% unemployment rate? Much better to have zero growth, zero population growth, and full employment.

The RICH CARE ABOUT GROWTH BECAUSE THEY DON'T WORK! Think about it. If you get all your income from "bonds" or capital gains, you must have growth to generate an interest rate and an appreciation in stock price. This is why all we hear is growth, growth, growth, like a metastasizing cancer.

This is also why the idiot rich start wringing their hands about the deficit--because in the past it could generate inflation and that means their fixed rate bonds could become worthless very quickly. From the owner's perspective, better to have 0% inflation and a small bond return with millions of hungry peasants versus, millions of busy worker bee peasants and 5% price AND wage inflation destroying their fat bond portfolios.