This is a historic week for us. Our national debt will now exceed 100% of Gross Domestic Product. Mathematically speaking, we are hosed.
A liquidity trap occurs when a government can no longer stimulate it's economy. And since our government uses Keynesian theory I suppose the Keynesian definition is appropriate. http://en.wikipedia.org/wiki/Liquidity_trap
Japan's debt has exceeded 100 and 200% of GDP for 21 years. They have one thing going for them that we don't. Their citizens pick up the country's debt tab through individual investment. They get a small interest return. We sell our debt to the world, we also pay them the interest.
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Bad Ideas, Like Bad Verdicts, Last Forever (Originally Published in March of 2013)
Of all of the stupid things we do, changing our clocks each spring and fall, has to rank near the top. The anarchists of Arizona don't r...
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