Posted on 06/28/2011 10:53:13 AM PDT by Nachum
Something I haven't seen anyone mention: the 14th Amendment prohibits the Federal government from defaulting. Not that the Constitution means much nowadays.
“The most worrisome part of the current deficit is that it is occurring on very low inflation (at least until recently) and interest rates.”
Very Low Inflation? Where have you been? The real cost of living or business has been going up about 10% a year since 1999.
“Very Low Inflation? Where have you been? The real cost of living or business has been going up about 10% a year since 1999.”
What inflation index do you refer? Even CPI-W which seems to overstate inflation does not have anything near a 10 percent rate.
“What inflation index do you refer?”
I stopped using any government “cost of living” adjustments along time ago. About the time the government started tying ss payment to the Cost of living index.
In 1999 a small cup of coffee cost me $.90. Same shop 2011 cost of a small cup of coffee cost $2.85. The owner doesn’t drive a Mercedes Bends and he works in his shop every day He has five employees and health care as well as other cost related to doing business. So you tell me which is a better gage of “inflation”, The crap coming out of Washington or someone who has to compete in the free market? I’m self employed and my cost have risen in line with the donut shop.
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