Deal With It

This was a really fun podcast. But I do not share Larry Kudlow's optimism that G-d will return to American public life. What do other Ricochetti think?

I too like Larry but I am a pessimist. The debt and the lack of will to address it will be America's downfall - at some point, no amount of a realistic growth plan will cover it.

GlennAmurgis (View Comment):

I too like Larry but I am a pessimist. The debt and the lack of will to address it will be America’s downfall – at some point, no amount of a realistic growth plan will cover it.

They need to hurry up and invent nuclear fusion.

This is the problem. Everybody that does anything except the ones in government is doing something deflationary. Better living through purchasing power. That is progress. That is how people understand progress. Very few things in this life are going to be a worse value in that sense.

Trade. Computers. Automation. It's all deflationary.

So the Fed has to run with inflation anyway. That's the problem.

So the debt grows because it's mostly just discounting inflation. It's not done for productivity enough.

We have been doing this since 1914 and it's going to fall apart the hard way. We should have done something about it the second the Soviet union fell. We shouldn't have traded with China. Import deflation from somebody else.

Inflation is about war, big government, and big finance. It's going to go down the hard way.

Can you imagine taking out a loan for a house and the house goes down in value? That is what you are dealing with.

The whole 2% inflation target came out of the basement of the Eccles building. 800 PhD's doing nothing. You can't even measure inflation.

Who's hide does 2% inflation come out of? People act like it's nobody. Then the debt to GDP keeps going up. It's insane.

‘They need to hurry up and invent nuclear fusion.’

Agreed, it will be fun to see how fast it will be declared unsafe, racist, anti gay and will harm women and children.