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During a recession you borrow money, spend and that constrains future cash flow. During an expansion you repay what you borrowed - that's the constraint. We're
by dd36 8y ago
During a recession you borrow money, spend and that constrains future cash flow. During an expansion you repay what you borrowed - that's the constraint.
We're constraining future cash flow during an expansion. That is stupid.
I am not sure how you keep mis-reading me.
- crdoconnor 8y agoI'm not misreading you. You're saying that spending constrains future cash flow. This is simply false. The US won't run out of dollars, ever. Japan won't run out of ten, ever. They have a 0% risk that they won't be able to pay back their debts because they print the currency. The only risk is inflation.