by Lance Roberts
Real Investment Advice
After 40-years of economic erosion, there are still deficit deniers.
The belief that debt and deficits “don’t matter” primarily stems from the basis the economy hasn’t collapsed and become a historical equivalent of Weimer, Germany. However, the rather elementary view fails to distinguish that dropping a frog into boiling water or slowly bringing the water to a boil equates to the same outcome. That latter just takes longer to get there.
A recent article by Barry Ritholtz entitled “Time To Stop Believing The Deficit Bullshit” is an interesting read. It makes a logical argument as to why running massive deficits doesn’t seem to matter. (Such is the basis for Modern Monetary Theory)