Re: Krugman: you can’t have a wage/price spiral w/o wages
On Jun 19, 2006, at 1:02 PM, Julio Huato wrote:
But the hostages of high rates and a strong dollar are not just average manufacturers, or regular folks with mortgages and maxed out credit cards. It’s also the federal government, the guy with the money printer.
Yeah, but the federal debt burden just isn’t that great. Gross debt
is around 66% of GDP, which is where it was in 1993, just before
Clinton started whittling away at it, and well below the 1946 peak of
108%. And a huge chunk of the debt is held by the Social Security
system - and if need be, they can always fuck over the beneficiaries.
Debt held by the public is 39% of GDP, well below the 1993 level of
49%. Deficits are big, but nowhere near as big as they were in
Ronnie’s day.
Doug