Posted by linkadge on October 13, 2013, at 19:44:35 [reposted on October 14, 2013, at 14:44:12 | original URL]
In reply to Re: gov't shutdown.... :( » Dinah, posted by sigismund on October 13, 2013, at 16:11:23
When you are as bankrupt as the US, you can only avoid austerity, you can't prevent it. The US government is great at Keynesian freeloading 'borrow from China give to the poor' economic strategies. However, they've done diddely to actually get the economy going again.
Once China starts to realize that they're not getting their money back, austerity will be imposed. It won't be an option. Interest rates will skyrocket and the government's plan to push debt driven to consumption will begin backfire.
The US economy is a disaster. All the US government does is artificially supress interest rates by printing money. The incentivise stupidity rather than sound fiscal prudence.
poster:linkadge
thread:1052214
URL: http://www.dr-bob.org/babble/poli/20120327/msgs/1052218.html