Four Ways Out
I recently was listening to a smart economist. He said there are three ways for the United States (or any country) to get out from a massive pile of debt like ours:
1). Grow the economy.
2). Inflate our way out of it.
3). Assign losses.
4). Default
The fourth is the one I added. What are your thoughts on this? Assigning losses is called "austerity" in the news lately. Nice-sounding word. I expect inflation. I don't expect any growth in real GDP above the growth in population. Default is a last resort...a massive resignation.
I think we'll see further real restrictions, probably in the form of means tests, for Social Security. Sure, you paid into it. Here's a quarter - go call somebody who cares. We'll see inflation. So, I'm predicting mainly 2 and 3.
1). Grow the economy.
2). Inflate our way out of it.
3). Assign losses.
4). Default
The fourth is the one I added. What are your thoughts on this? Assigning losses is called "austerity" in the news lately. Nice-sounding word. I expect inflation. I don't expect any growth in real GDP above the growth in population. Default is a last resort...a massive resignation.
I think we'll see further real restrictions, probably in the form of means tests, for Social Security. Sure, you paid into it. Here's a quarter - go call somebody who cares. We'll see inflation. So, I'm predicting mainly 2 and 3.
