I’m glad Congress has approved the President’s recovery plan, even though we’re borrowing the $1.9 trillion from our children. A big deficit to pull us out of last year’s “flash-depression” is justified, but the normal annual deficits are not. Republicans believe tax cuts are guaranteed to jumpstart the economy. Democrats believe increased spending is guaranteed to jumpstart the economy. They’re both wrong . . . such simplistic thinking!
Currently, Washington is enjoying a love affair with Modern Monetary Theory, which may quickly become a shotgun marriage. That theory believes that nations with a reserve currency have no limit on their debt because they can always “print” enough money to pay off their debt. That may be true in the academic world . . . but not in the real world. Watch the “dollar index.”
Here’s my rhetorical question: Just because there are no limits to our national debt, does that mean we should issue infinite amounts of debt?