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View Diary: Iceland Solves Banking Crisis by Indicting Bankers, Forcing Mortgage Relief (191 comments)

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  •  Deficit spending doesn't always lead to collapse (0+ / 0-)

    It doesn't lead to collapse if it is kept under control and there is a credible plan to return to parity at some point in the future.

    However, the more you spend and the more debt you rack up, the less likely it is that this is the case until you eventually collapse. The ratio of your debt to GDP cannot increase indefinitely, and what must end will end, one way or another.

    (-5.50,-6.67): Left Libertarian
    Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

    by Sparhawk on Sat Feb 25, 2012 at 10:35:41 AM PST

    [ Parent ]

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