"Government Borrowing Won't Create Savings" - Freeman

Thursday, March 17, 2011
"I long have believed there are two schools of thought on our current economic crisis and its effect on the federal government’s budget. The first is that the government must stop destroying the dollar, cut back all spending, and give up trying to “stimulate” the economy back to health. On the other hand, some don’t care. The end is near, and there is no way to change the direction of things. So let’s have a toga party. Washington has too many interest groups wanting too many things, so we are supposed to pretend we are prosperous even if we are not. The first view is more often heard, but the second seems to reflect how the political classes really act. However, there is also a third viewpoint: There is no crisis at all. The U.S. government can borrow money indefinitely and by so doing, those debts magically will morph into “savings.”" Read more"Government Borrowing Won't Create Savings"  William L. Anderson  Freeman, March 16, 2011.  Via the Foundation for Economic Education.  Image by renjith krishnan / FreeDigitalPhotos.net.