Comments on: Debt Productivity http://www.economyguy.com/debt-productivity/ Economic News For Everybody....by Tom Harvey and Cyrus Uible Mon, 06 Feb 2012 20:08:23 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: Tom Harvey http://www.economyguy.com/debt-productivity/comment-page-1/#comment-1601 Tom Harvey Wed, 07 Apr 2010 00:31:53 +0000 http://www.economyguy.com/?p=707#comment-1601 Hi Bill, The graph assumes that the "average" debt is spend the same way over time - some people will buy cigarettes and some people will buy productivity tools. Productivity is one of those great things, like compounding interest, that give, give and keep giving over time - and it will help pull America out of our problems over time. America has provided some of the greatest productivity improvements in the history of mankind. Tom Hi Bill,

The graph assumes that the “average” debt is spend the same way over time – some people will buy cigarettes and some people will buy productivity tools. Productivity is one of those great things, like compounding interest, that give, give and keep giving over time – and it will help pull America out of our problems over time. America has provided some of the greatest productivity improvements in the history of mankind.
Tom

]]> By: Tom Harvey http://www.economyguy.com/debt-productivity/comment-page-1/#comment-1599 Tom Harvey Wed, 07 Apr 2010 00:25:22 +0000 http://www.economyguy.com/?p=707#comment-1599 Hi David, I disagree with your comments regarding the relative nature of each currency devaluing together. The way that you and i will measure inflation is how much money we spend for gasoline and groceries. Inflation will hit with the monetization of debt, and it will hit those who "save" more than those who invest in "things". Inflation is insidious. It will result in something worse than the last Great Depression. Tom Hi David,
I disagree with your comments regarding the relative nature of each currency devaluing together. The way that you and i will measure inflation is how much money we spend for gasoline and groceries. Inflation will hit with the monetization of debt, and it will hit those who “save” more than those who invest in “things”. Inflation is insidious. It will result in something worse than the last Great Depression.
Tom

]]> By: David http://www.economyguy.com/debt-productivity/comment-page-1/#comment-1586 David Sat, 03 Apr 2010 04:20:40 +0000 http://www.economyguy.com/?p=707#comment-1586 We are at the end of a multi-generation debt boom cycle so naturally additional debt provides no boost to GDP. The only options are to unwind slowly or quickly. My sense is the USG will continue to monetize the debt through the Fed and this will not have massive inflationary affects because global currencies float and other nations have the same debt problem. Thus, currencies don't really float, they just sink more or less quickly in relation to each. We are at the end of a multi-generation debt boom cycle so naturally additional debt provides no boost to GDP. The only options are to unwind slowly or quickly. My sense is the USG will continue to monetize the debt through the Fed and this will not have massive inflationary affects because global currencies float and other nations have the same debt problem. Thus, currencies don’t really float, they just sink more or less quickly in relation to each.

]]> By: Bill http://www.economyguy.com/debt-productivity/comment-page-1/#comment-1571 Bill Wed, 31 Mar 2010 05:34:15 +0000 http://www.economyguy.com/?p=707#comment-1571 The one problem I see with your graph is it assumes all borrowed dollars were being put to use in the same way. Borrowing money doesn't provide growth. How you use your leverage does. The person who borrows money to buy cigarettes isn't as productive at the person who borrows money to purchase a new piece of equipment and improve producitivity. Perhaps the government was more fiscally responsible 50 years ago? Or at least the economy wasn't as drug down by the policies of the government. The one problem I see with your graph is it assumes all borrowed dollars were being put to use in the same way. Borrowing money doesn’t provide growth. How you use your leverage does. The person who borrows money to buy cigarettes isn’t as productive at the person who borrows money to purchase a new piece of equipment and improve producitivity. Perhaps the government was more fiscally responsible 50 years ago? Or at least the economy wasn’t as drug down by the policies of the government.

]]>