well written article? It is one paragraph, by an unknown entity, and is essentially unfounded guesswork...
Very well written. Too bad they use all those assumptions they make are wrong. All that economic growth would've happened anyway with or without the government spending. You cant tell me that Bill Gates would not have started Microsoft without government spending. You cant tell me that Intel would not have invented faster and faster chips without government spending. You cant tell me that apple would not have come out with all their gadgets over the last 25 years without government spending. All that debt is countries loaning us money so we can build our military stronger and spend more on education (funny that all the people that actually do produce something of worldwide value are the ones that usually drop out of school too, so what does that tell you about our education system) Seems like the smartest and brightest in our country are the ones that are educating themselves and not finishing university.
Yes, first there will be deflation for a period of time as industries close up shop, fire workers, sell inventories at firesale prices, and consumers tighten their wallets. Once these structural forces are finished (could be 1 to 10 years), the loose monetary policies of the fed, rising commodities and weak dollar will unleash extensive inflation even with scaled back consumer demand. Whether or not they spike interest rates and stop printing money. Rinse and repeat until we abolish the Fed and the ability for private banks to create money and artifically inflate markets.