Sunday, August 28, 2016

"debt/deficit can pose a problem by creating too much demand in the economy. This leads to higher interest rates and/or higher inflation. The effect of higher interest rates would be to crowd out investment and thereby slow the rate of productivity growth, making the economy poorer in the future than it otherwise would be. Higher inflation will eventually require the Fed to raise rates to prevent it from accelerating out of control."

Conventional willful cretinism