New Post (192): Debt is not a 4 letter word.
With the unfolding hi-drama in the USA and (southern) Europe most observers have been treating debt like the bubonic plague.
Nothing could be further from the truth.
Debt is what finances the deficit of a nation.
Currency too is a form of sovereign dept.
It is what a government chooses to do with finances raised through debt that can potentially do harm.
The sourcing of funding is not an issue. The subsequent deployment of that funding is a problem---or can be.
The key to it all is --- oversight ! (ceaseless hawkish regulation)
We are blaming the car for the driver’s recklessness.
Raising the debt ceiling is like kicking the cans down the road. Eventually all we would see is only a pile up of cans and no road.
There is an urgent need to make fashionable once again the idea – “live within your means”.
This might even save the environment……….
A combo of the gold standard together with penalty points for carbon footprint may encourage greater responsibility by nations.
Charlie Brown
