Barney Frank: U.S. government default likely

[jacko]

Totally agree. Gas taxes would need to be raised.

Look, the white elephant in the room are the wars and defense spending...AND once people are back to work, they will pay taxes, and spend money...very classic Keynsian economics...would still work. Besides the work needs to be done on our bridges, roads, etc etc etc.

[banca rotta]

Look, the white elephant in the room are the wars and defense spending...AND once people are back to work, they will pay taxes, and spend money...very classic Keynsian economics...would still work. Besides the work needs to be done on our bridges, roads, etc etc etc.

What's crazy is a lot of people are acting as if we currently have "keynesian" economics. It really isn't. It's just bailouts for banksters.

keynesian is just temporary govt stimulus for various projects until we can get the economy moving along. I agree we need the infrastructure rebuilt and it will help so many.

The pickle we are in is that our monetary system is based on debt. Money was once derived from gold and silver. Today it's derived from debt.

We all must go into debt and spend in order to keep the money supply from collapsing. When we all go bankrupt and save money the systems comes crashing down since money is drying up.

To make up for us citizens and small business not spending the govt then goes into debt to keep this thing afloat. Trouble is as this post is stating there's only so much debt the govt can take on before it too hits a brick wall.

While J.M. Keynes was a huge supporter of temp deficit spending he never proposed a nation bankrupt itself and destroy it's currency over non stop stimulus.

[IamOld]

Quite right - but and however - we do have to spend domestically we must cut...elsewhere....

What's crazy is a lot of people are acting as if we currently have "keynesian" economics. It really isn't. It's just bailouts for banksters.

keynesian is just temporary govt stimulus for various projects until we can get the economy moving along. I agree we need the infrastructure rebuilt and it will help so many.

The pickle we are in is that our monetary system is based on debt. Money was once derived from gold and silver. Today it's derived from debt.

We all must go into debt and spend in order to keep the money supply from collapsing. When we all go bankrupt and save money the systems comes crashing down since money is drying up.

To make up for us citizens and small business not spending the govt then goes into debt to keep this thing afloat. Trouble is as this post is stating there's only so much debt the govt can take on before it too hits a brick wall.

While J.M. Keynes was a huge supporter of temp deficit spending he never proposed a nation bankrupt itself and destroy it's currency over non stop stimulus.