Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (34437)	5/28/2003 1:47:16 PM
From: AC Flyer	Read Replies (1) \| Respond to of 74559

elmat: >>means money will be printed<< Well, this is mostly an issue of political philosophy. Politicians will always spend more than they have available from current receipts. To keep them in check, Milton Friedman and I agree that the best approach is to run a permanent deficit. I'm sure you know that the US is one of the least indebted of western countries with Federal debt of about 35% of GNP and a current deficit of less than 2% of GNP. The deficit is a rounding error in the Federal Budget. So, no problemo. You may have noticed our recent jump in competitiveness, due to the fall in the value of the dollar. US products just got, uhh, maybe 30% cheaper in much of the world. Good news, eh?