Monday, June 28, 2010

The Economist "Rising Government Debt is a Ponzi Scheme"

I am always pleasantly surprised when I find a mainstream media article that displays a healthy dose of common sense when it comes to fiscal stimulus and debt.

Philip Coggan's special report Repent at Leisure, in The Economist manages to do just that. http://www.economist.com/node/16397110

Like alcohol, a debt boom tends to induce euphoria. Traders and investors saw the asset-price rises it brought with it as proof of their brilliance; central banks and governments thought that rising markets and higher tax revenues attested to the soundness of their policies.

The answer to all problems seemed to be more debt. Depressed? Use your credit card for a shopping spree “because you’re worth itâ€