Wednesday, 27 February 2013

QUOTE OF THE DAY: How to handle exploding govt debt

“What about defaulting on [exploding government] debt? San Jose State University economist Jeff Hummel has written that government default would be ‘a balanced budget amendment with teeth’ because it would be hard for the [government] to borrow after stiffing their creditors. Bruce Bartlett argues that default ‘would constitute a grossly immoral theft of trillions of dollars from those who loaned money to the federal government in good faith.’ Really? It’s worse to default on creditors who took a risk than to forcibly take money from taxpayers who have no choice?” [emphasis added]
             - David Henderson, “Bartlett on Tax Reform

[Hat tip John Cochran]

1 comment:

  1. Also they are defaulting on super pension, free medicare and free education and that sort of stufs- especially the stuff for old geezer folk. Ok since all them old geezers know fully that these "freebie" gifts are extracted from other people by threats fraud coercion & initiation of force. Default is better than the other thing

    Amit

    ReplyDelete

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