Most of the standard version of economic theorists in Europe grew up in Marxist dominated Unis and duped by that old pooper Lord Keynes.
yes, I was going to ask you about that Humpy, just what was it in particular you disagreed with when it came to Keynes? I always found him to be an affiable fellow, but I never palled around with him in England. At the time we were more interested in fighting wars and baseball (not to mention girls.) I've tried to discredit him many times, but after the babies came I could no longer afford my subscription to the Hoover Task Force to Elimininate Communism so my monthly news letters stopped arriving in the mail and I kind of lost interest. But I agree with you, at one time, when it came to economics, the FBI was second to none.
Everything works until it doesn't. They will too. Btw, US public debt is larger than the UK. I believe you're referring to total credit market debt, which is the total stock of outstanding debt (private + Government + corporate). In that case, the UK is much higher than the US (~700% debt to GDP, I believe). What makes public debt troublesome is Governments proclivity to monetize it. Whereas, presumably, private and corporate sector debt is backed by something productive (income or assets). Of course, that's all relative too, since in a deflationary route, which is exactly what the Central Bankers of the world are desperately trying to avoid right now, all that credit market debt collapses into itself. This is why we're printing and will continue to print until the bottom falls out. The die is already caste. The US is already deficient by at least 20-25% GDP. Bernacke is just postponing the day of reckoning.
Currency devaluation is one of the two tools available to US government to deal with debt crisis. Other is ofcourse austerity where budgets have be balanced no matter what. However, Obama has shown little promise to balance the books. Worst, Romeny's declared agenda has no promise to balance the books and will end up further inflating the debt numbers. Military dictatorship anyone?
They're gearing up for it. Washington knows a collapse is coming because they're the ones driving us off the cliff... National Defense Authorization Act? Indefinite military imprisonment of US citizens on US soil? Leaked US Army documents have come out that detail plans for internment camps in America. For American citizens. How to run them etc. You tell me.
The Gross piece is schizoid at best and a waste of time... It contains various contradictions... And doesn't even try to explain the DEAD CALM in the bond market. Meanwhile... Japan has maintained high debt and < 2% 10 Year yields for 15 years. Romney has promised and will deliver the MOTHERLODE... He will deliver a business-friendly US government... that is a certainty. Consequently, trillions parked in US corporations will be invested... Another trillion parked offshore will be repatriated on fair terms... Regulations will be loosened on business... The energy industry will take off, etc. Reagan inherited a MUCH worse overall situation... And turned it into the biggest boom of our lifetime... From 1983-90 GDP growth averaged 4.1% = 35% economic expansion. A similar Romney boom will make the US deficit manageable again... And cement a strong USD as the global reserve currency. Obama's total economic illiteracy has tanked expectations so low... Young people can't even remember what an economic powerhouse America can be.