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Politics : View from the Center and Left

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To: Steve Lokness who wrote (211068)	12/9/2012 8:37:04 PM
From: neolib	Read Replies (1) of 541791

I agree completely wrt to constantly accumulating debt. That is just another way of saying the low frequency end of the spectrum is always substantially positive. It can't be long term. But Keynes was not advocating constant positive low frequency debt. The cycle of debt should have roughly the same frequency content as economic cycles do, and it needs to be correctly phased. The problem in politics is that now is never a good time to dampen growth and pay down debt. That is always better left for the next guy to deal with. I'd fault Keynes for not addressing the practical political side of his economic theories, but for aught I know, he did comment on the issue. What makes no sense to me is the sudden religious conversion of many on debt with zero awareness of the current economic phase. Phase is king. Literally. And that is independent of the current operating point of the accumulated debt. If you have room to maneuver use it, and then pick up more space ASAP as things improve. But do it intelligently.

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