A one question post today:
- Given its enormous debt load and the spike in interest rates driving debt service closer to unsustainable levels, which is in the US government's interest?
a) A sharp recession to drive interest rates down.
b) Robust economic growth.
Comment freely.
What is in the US citizens best interest? That is not the same thing as the elites interest
ReplyDeleteThat's a good question, and in an ideal world citizens' and elites' interests should be identical. Because if the citizens are not taken care of, the elites are going to collapse sooner or later. Unfortunately, elites tend to be shortsighted as History shows... Rome, royal France, Czarist AND Soviet Russia and so many more...
DeleteIn France in 1797 on Sept. 30 similar situation led to the cancellation of 2/3 of the debt. Except for some creditors it seems that it was a big success as it allowed to finance 15 years of wars in Europe which could have ended well for France if Napoleon had not wanted to force Russia to cancel commercial relations with England.
ReplyDeleteI for one think that sooner or later some or most of the american debt will be deleted the same way.