Hi, great article as always! Very much appreciate your writings. Can I ask you why you multiply the 'All debt to GDP' graph with 40,000 and not just 4,000?
All you need to know to understand that we are inexorably headed to towards either a inflationary default or a hard default is that the idea that the size and expense of government should be reduced is completely unfathomable to anyone at the federal level except to a few fringe types like Rand Paul.
The idea that maybe the federal reserve doesn't need 20,000 employees, or that there is a huge amount of waste and bloat in the military such that the budget could be reduced massively without a decrease in combat capability, or that it doesn't make sense that the capital police has 2,000 officers to protect the capital and ~550 members of congress, is simply not even thought of.
Because government spending in a fiat regime is entirely divorced from anything of value or any sense of fiscal responsibility, they will simply keep spending and borrowing and increasing the burden until something breaks.
Man this is amazing. Who are you? Have you written a book?
This is the best write up of sectoral analysis that I have ever seen. VERY educational for me.
Do you plan on doing a similar write up of China? I’d like to see a collaboration with Michael Pettis.
Hi, great article as always! Very much appreciate your writings. Can I ask you why you multiply the 'All debt to GDP' graph with 40,000 and not just 4,000?
All you need to know to understand that we are inexorably headed to towards either a inflationary default or a hard default is that the idea that the size and expense of government should be reduced is completely unfathomable to anyone at the federal level except to a few fringe types like Rand Paul.
The idea that maybe the federal reserve doesn't need 20,000 employees, or that there is a huge amount of waste and bloat in the military such that the budget could be reduced massively without a decrease in combat capability, or that it doesn't make sense that the capital police has 2,000 officers to protect the capital and ~550 members of congress, is simply not even thought of.
Because government spending in a fiat regime is entirely divorced from anything of value or any sense of fiscal responsibility, they will simply keep spending and borrowing and increasing the burden until something breaks.