This blog was begun late in 2008 with the motto as titled above. It is nice to see a somewhat mainstream economist speak out in favor of lest debt and more equity. Here is an excerpt from Andrew Smithers in We need to turn to equity financing:
We are surely running up against the limits of debt, not only in the private but also in the public sector. . . We must therefore turn to other ways. One of the two possibilities is to rely on more equity and less debt for financing investment. The other is to transfer wealth from debt owners to equity owners through inflation.
People say default in some sort, such as through inflation or more overtly, is inevitable for the U. S. Federal Government. Yet the application of common sense, the cessation of market-distorting activities by the government at the implicit point of a gun and the restoration of an economy designed to serve the people rather than their masters in Washington will allow their government to get back to where it once belonged.
Smithers' article is very much on the right track. There is little time to lose.
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