no don't stare at this picture of mr 'really really geeky' pine cone guy ...read this :
"A. If you have a high amount of debt but no deficit, you can pay it off without high inflation or rapid growth. It just takes a really long time. But it's perfectly possible.
B. A high deficit does not require either inflation or growth to go up in the future. Why? Because you can cut the deficit."
it leaps out at u doesn't it
"you can cut the deficit "
syre you can look at the baltic states ...
or greece even
the deficit cut prolly won't reduce the economy's tax bases
enough to nullify let alone increase the deficit
so cut away .....
but what about all that slack you create ?
you simply wait out the structural source of the slack
the built in deficiency in effective demand for domestic output
if its say like greece too much importing at full employment
youy get along on less then full employment or you cut wages and increase the real burden of existing debt
but you are trying to pay it off aren't you
the key here must be time frame
"It just takes a really long time" applies just about everywhere
yup you just gotta tough it out as you wait it out
the sea always calms down some time or other ...am i right citizen ?
---------------------------------------------
had enough ?
well i haven't
"So, here's a perfectly possible scenario:
We temporarily run a high deficit. Then we balance the budget after that. "
this is so under motivated he might as well say
we temporarily drive back and forth across the median stripe for a while
scaring the shit out of our passengers
on coming traffic and maybe even ourselves ..
.then we stop doing that ...
"We have a bunch of debt."
and Growth remains slow
but inflation remains low."
" Over time, we very slowly pay off the debt,
without defaulting, growing faster, or causing higher inflation."
or we fall of the prudence wagon
into another massive deficit spasm and ....
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look we can have a built in chronic deficiency of effective demand
gotta solve that ...eh ?
who's to say how long that might take while running full employment budget deficits
we can over save for almost ever maybe christ sake
or go so stale we invest too much over seas
or buy too many foreign made trinkets and goo gaws and gadgets and stuff
or ...
