| Fact 1: Government current expenditures directly contribute $5.621 trillion out of $16.6 trillion of US GDP. http://research.stlouisfed.org/fred2/series/W022RC1A027NBEA?...
http://research.stlouisfed.org/fred2/series/GDP Fact 2: State and municipal governments have subsidized borrowing costs via the federal tax exemption. I don't know where you live, but are your state and local governments borrowers? What about the road money from the Federal Government? Fact 3: Private savings come from public deficits http://research.stlouisfed.org/fred2/graph/?g=mzu What if, what if, what if... Well, you will discover in due time what all of this nets out to and no one will enjoy it. The forces of deflation are far mightier than the forces of inflation for inflation requires persistent and exponentially increasing consumption, fueled by net-borrowing of the combined public and private worlds. As it turns out, the zombie apocalypse isn't triggered by an infectious disease or rapidly mutating virus. Instead, it's capital destruction via chaining debt defaults. |