Wednesday, June 29, 2011

WSJ: The Deficit Is Worse Than We Think

Larry Lindsey in the Wall Street Journal Opinion section provides a clear and uncomfortable assessment of the budget debate.

Normal interest rates would raise debt-service costs
by $4.9 trillion over 10 years, dwarfing the savings from any currently
contemplated budget deal.

Some might say rather than a debate this is Preening and posturing by a gaggle of bloviating gasbags but for now let's say debate. Linsey demonstrates the dimensions of the problem clearly and succinctly. The former Federal Reserve Governor gives us a worrying picture. Read the article.

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