On one hand, the deflationists are claiming that given the extremely high debt levels in the West, further inflation is impossible.
September 30th, 2009 | Puru Saxena | 4 comments | ContinuedAll Posts Tagged With: "budget deficits"
How to Prepare for the Coming Devaluation
Well, yesterday the government said the fall in revenues from the global black swan dive will lead to a $115 billion decline in government tax takings (what the government likes to call revenue). That’s a pretty big hole in the budget. It suggests that we’ve entered an era of regular government budget deficits and, if the RBA holds to form, lower interest rates. These lower rates, and not just in Australia mind you, represent the coming devaluation of paper money against real goods…
February 3rd, 2009 | Dan Denning | 20 comments | Continued
Budget Deficits Are Back in Fashion
That Axis advocated running a capital account surplus. It was partly to offset the rising current account deficit. But in some ways, the surplus in the capital account came about because of policies that encouraged debt and consumption, the very things that led to the current account deficit. The result was a boom in American financial services-while American manufacturing was shipped offshore…
November 20th, 2008 | Dan Denning | 0 comments | Continued