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Politics : The Donkey's Inn -- Ignore unavailable to you. Want to Upgrade?

To: Oeconomicus who wrote (9263)	10/3/2004 4:47:07 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 15516

Indeed, the payments on America's debt load will remain "affordable" -- just so long as the Fed continues to drive interest rates to zero. America is quickly being made into the image of Japan mired in a grinding economic depression. The major difference is that America will be a Japan without Japan's high level of personal savings. That means the difference between endurance and collapse. It may interest you to know that should the Fed attempt to "normalize" interest rates, America's debt load is no longer affordable. Unfortunately, your insane delusion of "affordable debt" ends once interest rates reach zero and they can no longer be lowered. Reagan's economic 1987 tax policy, "Grandpa has a new credit card", was a universally popular feel-good tax policy which created a false prosperity floated on a tidal-wave of new debt. home.pacbell.net We'll see if the inevitable conclusion, "Grandpa is bankrupt", is just as popular. Luckily Bush brought this ugly conclusion much closer to today with his reckless spending.