I too, hate that we have so much debt and that we continue to run deficits.

Let us imagine we don’t run deficits. Let’s imagine we cut spending so the budget is balanced. Wouldn’t that hurt a lot of people. So I guess instead we need to raise taxes, that would clearly be unpopular but we will just increase the taxes on the one percent so only the one percent will complain. So to eliminate the trillion dollar deficit we would need another half million dollars a year from each of the one percent. Wait, some of the one percent don’t make that much in a year. Yeah but the Billionaires could pay more.

This is cool no deficit and the interest on our borrowing will start to drop so we would start running surpluses. Man oh man the market will be betting up our bonds until like Germany they will have negative interest rates.

Maybe the U.S. should run a bit of a deficit, maybe the rich don’t need to pay that much more in taxes. Wait, there is a novel idea, some sort of balance but yes the pendulum needs to swing back to smaller deficits.

That is what should have happened during the decade long economic expansion but instead the Government cut taxes and increased spending and at the same time the Fed went back to lower rates and more easing. Hey, great they kept the expansion weak as it was they kept it going. What do we owe the piper, how bad will the next recession be. Maybe the achieved the soft landing and no next recession.

TEK