Skip to main content

View Diary: Why deficits don't matter - the reality of government finance (116 comments)

Comment Preferences

  •  The situation in Zimbabwe in no way matches (3+ / 0-)
    Recommended by:
    hestal, psyched, Dustin Mineau

    the US situation.  Among other things, Zimbabwe  owed debts in foreign currencies.

    The US owes all it's obligations in it's own unit of account, the dollar, which it can create at will any time it wants to.

    •  Zimbabwe (2+ / 0-)
      Recommended by:
      katiec, psyched

      also destroyed its productive capacity before it printed so much. In doing so it destroyed its own production of goods creating a classic inflationary precondition too much money chasing too few goods. Here, of course, we have 20 -25% idle capacity just waiting to absorb deficit spending by the Government w/o demand-pull inflation.

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site