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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (205)	2/18/2004 4:55:14 PM
From: mishedlo	Read Replies (1) \| Respond to of 116555

Ways to get out of debt From Corbetti on the FOOL California, as the world's 5th/6th/7th (pick the right number) largest economy still suffers from one weakness - unlike the US Government and other major foreign economies, California can't just print more currency... so what it really comes down to is three options (or a combination of them) 1) cut spending (this is a novel idea usually frowned on by taxpayers because they like those services) 2) raise taxes (this is a novel idea usually frowned on by taxpayers because they hate paying for the services mentioned above) 3) make the kids pay for it (this is a tried and true method that no one seems to mind, because the generations responsible for these kinds of debts don't have a say in the matter... look at New York City and how they will be paying off the bonds from the 1970s in 2030... tell me there isn't something just fundamentally wrong with that) or there's always option 4: tell the bondholders to get stuffed and declare bankruptcy. Then start fresh. That'll show them. =========================================================== Ultimately it will be #4 It is just a question of timing That process will be deflationary When it's over inflation kicks in big time Mish