Yes, we will keep borrowing till they keep lending.Why? Because our political class depends on spending to gain and maintain power.No spending, no power.And because, there is no constituency for spending cuts. Even Paul Ryan's plan, the most frugal there is, keeps spending and spending.
There's also the small matter of Ryan's plan being such a laughingstock that Harry Reid intends to force a vote on it just to make the GOP wet its pants. While Barack Obama tattoos the Ryan plan onto his reelection campaign...
As opposed to Harry plan of...?Or Barry's plan - to raise taxes by $200Billion a year or so while running $1.6 + Trillion deficits?Obama is going be riding inflation, gas prices, and foriegn failures into the campaign.
"The plan is a complete joke that will be used to beat you over the head for the next two years.""Hey, at least we HAVE a plan!"
Because of the slack labor market, there is absolutely no chance that a rise in commodity prices will lead to generalized inflation, as it did in the late 1970s.Those inflation bubbles were puffed up by "cost of living" contracts which no longer exist in great numbers. The resulting inflationary cycles were explicitly cited as a justification for anti-unionism.
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