Quote:
Originally Posted by finnbow
The debt is the sum total of accumulated deficits. Accordingly, decreasing the deficit slows the increase in the debt. Even a believer in the fiction of supply-side economics should be able to understand this even if it involves math.
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Quote:
Originally Posted by Rajoo
Because they are inter related, deficit funding of a government leads to national debt. Perhaps you should talk to yourself and spare us from your diatribes.
Have you ever looked at anything from a middle of the road perspective? In engineering we have a saying, statically the answer is always in the middle and never at the extremes.
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Yes, they're inter-related, deficit becomes debt, all good. Powell's presumed course of action - increase rates to drive down spending and thus drive down employment thus curb inflation involves increasing rates on debt, and has no short term effect on deficits (except to the extent that budgeted dollars are consumed retiring debt or paying interest on the debt). Which is why I was wondering why you were bringing up deficits.