We can try to inflate away the government’s debt, but we’ll go broke before succeeding

Summary:  another in a series about the financial condition of the US government.  This is  follow-up post to Why the U.S. cannot inflate its way out of debt (15 March 2010).   We're in worse shape than most of our peers, and far larger (whales cannot manuever like minnows).   Other posts later this week discuss this important topic. The … Continue reading We can try to inflate away the government’s debt, but we’ll go broke before succeeding

Our government’s finances are broken. How do we compare with our peers?

Summary:  Our government's finances grow worse each year.  Comparisons with the financial condition of our peers show our peril.  We're on the clock.  Only smart, rapid, cohesive action can save our Regime.  These articles are worth reading in full, plus the additional ones listed at the end.  Here are the highlights. The most important factor: … Continue reading Our government’s finances are broken. How do we compare with our peers?

See the very essence of the US government’s financial problems (clue: it’s us)

Political activists have given a thousand explanations for the deficit.  The guilt parties named include both parties and every political institution.  One group usually escapes blame, esp since our Republic puts them in control:  us, the American public.  The political blame game resembles porn -- both play to their audience's fantasies, ignoring reality.  When we're ready … Continue reading See the very essence of the US government’s financial problems (clue: it’s us)

A look at our government’s debt – rising because we like to spend

One of the great similarities of our economic downcycle and Japan's two decade long journey to oblivion:  both are periods of economic stress caused by private sector deleveraging -- in which the government mitigates the resulting pain by borrowing and spending.  Japan's government has run up terminally large debts, on a gross basis equivalent aprox to 2x its GDP.  We're on the … Continue reading A look at our government’s debt – rising because we like to spend

Another crack in Republic’s foundations: not the size of the debt, but when it’s due

There are so many fractures in America's foundations it's easy to lose track.  One is subtle, not like to cause problems -- but in a crisis it could became a major or even terminal factor:  the maturity structure of the Treasury's debt. To save money as the debt has more than doubled since 2000, the government … Continue reading Another crack in Republic’s foundations: not the size of the debt, but when it’s due