Comments | reality_hammer: Mankiw asks if it is time to go negative

reality_hammer

Mankiw asks if it is time to go negative

Apr 18, 2009 19:23

Negative in terms of interest rates...which has the same effect as higher inflation. I'm a bit worried about that prospect. Both because it is a bit like strapping a rocket to you car to make it go faster (how do you turn it off?) and because I think we're headed for much higher inflation anyway. What will come of adding more fuel to that fire?
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ben bernanke, federal spending, obama administration, economics, greg mankiw, unintended consequences, inflation

Comments 8

pogo101 April 18 2009, 23:56:32 UTC

Or just leave the USA for one of the (admittedly few) civilized countries with a lower tax burden and debt burden.

izuko April 19 2009, 01:16:13 UTC

Why would we want Americans to borrow more? We already carry enough debt, as it is.

Dave Ramsey 2012!

graywolf44 April 19 2009, 22:54:54 UTC

I must admit that economics is not one of my strong suits, so I have a question. How does the citizenry go about defaulting on the government debt (that has been foisted on them)?

allhatnocattle April 20 2009, 02:24:20 UTC

By renouncing your citizenship and residency.

graywolf44 April 20 2009, 11:02:18 UTC

That seems a bit drastic ...

allhatnocattle April 20 2009, 13:41:16 UTC

That is the easiest way out.
The other option is to pay off your collective debt. And that doesn't look like its in the cards at all.

Thread 5

peebeebaynut April 20 2009, 02:05:46 UTC

Just spend your money while it's still worth something.

The 1923 classic photo of a German woman putting Marks in the fire because they did not have enough value to pay for wood.

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