Oh wait, maybe our debt really isn’t all that sustainable after all
For decades we’ve been assured by the delusional alliance of the Keynesian Cargo Cult and self-serving politicos that “deficits don’t matter.” Is adding debt while gross domestic product (GDP), wages, etc. are basically flatlined sustainable forever? Deficits don’t matter until they do, and that will likely be a Supernova Model event of sudden crisis and implosion.
It’s not just debt – at the same time the national debt has hit 7 times 2012 federal revenues and 108% of 2012GDP, the money supply has (since 2000) grown more than 5 times faster than GDP, suggesting some serious inflationary pressure. Check out my blog post today http://jackrabbitcheese.com/2013/06/05/the-money-problem-2/ comparing our deficit and national debt with some of the other major world economies. We are not in good company.