Debt Spiral

Ratcheting to Ruin

The U.S. government moves closer to a debt death spiral. Arguably, we are already in the beginning phase of this spiral as this rather scary observation points out: The nation’s debt leapt $166 billion in a single day last week, the third-largest increase in U.S. history, and it comes at a time when Congress is balking over higher spending and [...]

Michael Kinsley’s Intuition is better than “Expert Opinion”

In an article in Atlantic Monthly entitled My Inflation Nightmare, Michael Kinsley worries about the future of the economy. He fears that inflation, perhaps hyperinflation, is a likely next stage in the economic crisis. His fears contradict respected liberal economists, Paul Krugman and Larry Summers. They argue that deflation is the likely outcome. Mr. Kinsley defers to their expertise and [...]

Government as the Titanic

  The great ship Titanic was thought unsinkable. So too is the great ship of government. The latter belief is as wrong as the former one was. Like the Titanic, government is in dangerous waters and will soon hit one or both of two massive icebergs. When the Titanic struck ice, it was a tragedy. When the government hits its [...]