mongombolo's - deep penetrations - wednesday, page-41

the US can not just fiddle with their computers to make more money and securities and NOT have a knock on effect.

The lenders of the money, China, Japan etc already have started NOT reinvesting in US bonds. Hence the rise in commodities / they have exported inflation. If you lent someone money time and time again to only find out that they have been both cooking the books and also not the growth to be able to pay you back, would you send more money?

I understand it is not simple to tax, but revenue is required. Culling spending such as the Tea Party wants will be a more direct way to slow the economy in my mind. You might consider that moving their HQ's OS is an option if taxed, but do you think it that simple? Most large companies are already OS as far as manufacturing goes and stability of governments rules out many of these options for basing themselves OS.

Overall though in my heart I actually feel this cycle is just what we get with our "we must grow at all costs" economic model. Keynesian economics is NOT without it's problems that also will fail time to time.