"In Every Way a Good Thing": The Upside of Soaring Federal Budget Deficits

While bonds yeilds are rising and the dollar is weakening, because of massive stimulus packages, the largest US banks are having one of the best earning seasons ever. This is due to the crook government officials and their distructive policies.What people should do is take their money out of big financial institutions and deposited in small and regional banks. I want to see BAC, C, and WFC to be nationalized and cleaned up not to be artificialy supported with taxpayers money.

Talk about a great stabilizer, the UK gets downgraded and the pound still continues to appreciate against the dollar. Its in free-fall and its CYA time.

The speaking skills of this guy is horrid. He cant even explain his points very well. Commercial mortgages and the ARM resets are going to pound the market way down. THATS ALL YOU NEED TO KNOW RIGHT NOW!!! Anything else is just a rumor or knee jerk reaction from a day trader.

Please set your phone to silent before the movie begins. And before a presidential press conference. And before delivering an interview.

Its high-time techticker gets more Austrian-view economists and kick these Keynesians to the curb.

Keynesian economists are insane. One day, the world is going to realize that the US doesn't have enough money or even productive capacity to repay their loans. That will be the day they stop lending to us (i.e. buying our Treasuries). But I guess in the world of Keynesian economics, spending a bunch of money you don't have is "in every way a good thing".

If it were possible for a country to print its way to prosperity, Zimbabwe would be rich rather than a basket case. The US is headed for the same fate. Sell that Buick and buy a rickshaw.

Yes, recovery took 20+ years thanks to FDR's misguided Keynesian policies. Galbraith betrays his elitism when he says anyone who doesn't agree with me, simply doesn't understand the underlying economic policies. Given that I'm not regurgitating the policies of my pothead ancestors that impeded the growth of our nation, I'd say I and many others understand a lot more about economic principles than the likes of you. Reread some Austrians.

With a name like Galbraith, our most well-known economic ignoramus (Galbraith never got anything right - he still believes that the New Deal made sinse), what else would one ever suspect? Giant deficits mean giant interest payments for the foreseeable future. And higher deficits mean more borrowing which mean, guess what? That's right, higher interest rates. And if that isn't bad enough, higher deficits are used topay for, guess what? That's right. Higher energy prices, making our sickly industrial base in even worse shape. The Chinese are building 1 nucelar plant per year, for around $2 billion per gigawatt. We're spending eight times that amount to build mostly useless wind power. Guess why Buffet is investing in the Chinese economy?

Not To Worry just keep printing more $$$ To Pay Budget Deficit eventually the Markets will be a roller Coaster Ride that never goes Up Only Down

This guy has to defend Keynes, his father. I disagree with the Keynesian view and agree with the Austrian School of Economics. I'll argue with this guy anytime. If a large budget deficit is so great, why not print an infinite amount of money and drop it out of helicopters? That should be even better for the economy! Not! He forgets that there will be a breaking point where people will give up on the currency as it will become worthless as all fiat currencies have become worthless when you look at history. The world's fiat currencies will not be an exception.

This article is further proof that Keynesian economics is garbage. We are in trouble because we have spent too much. We are broke. And now Galbraith thinks spending more money that we don't have is good!?! And what is the government spending our money on? Pork. More junk pet projects, more American empire, more welfare. All government spending is a waste.

This guy is a MORON! Debt has consequences, has he noticed, millions of homeowners are losing their homes because their debt is unsupportable. The banks should have been nationalized, but injecting capital into them is almost the same thing effectively. Does this idiot know there's a financial/debt crisis going on? Transfer payments, spreading the wealth around, is just blatant socialism which has never worked anywhere.

What a hack. Does he not realize that every dollar borrowed by the government not borrowed by the private sector? That every dollar the government borrows pushes up interest rates? That the only way to "counter" that effect is to devalue the dollar by printing more, which leads to higher prices which is also a tax? That printing more represents a property tax? If it is in every way a good thing, why stop where were at? Why don't we just do a trillion a day? Why do we bother going to work?? What a hack.

tzoon002 you got it baby...after they take our money now hitting us with undue penalties, GIVE YOUR MONEY TO THE LITTLE BANKS IN YOUR COMMUNITIES.

We recovered 20 years after the '29 crash because every other major industrial producer on the planet was bombed back in time by a generation! Unless he thinks that WWIII is going to happen soon (and we're somehow going to come out of it unscathed) that's a pretty bad justification to 'spend spend spend' for the next 20 years.

We recovered 20 years after the '29 crash because every other major industrial producer on the planet was bombed back in time by a generation. Unless he thinks that WW III is going to happen soon (and we're somehow going to come out of it unscathed) that's a pretty bad justification to 'spend spend spend' for the next 20 years.

No wonder we are scratching our heads and not knowing what the next move should be. There are people out there like James Galbraith spouting off these unbelieveable unsupported theories. Some of these notions about building massive debt to solve our financial problems is down right crazy and disjointed. What we need it to put these folks, who out of personal greed violated the public trust, in jail and seize all of there assests and turn over to the treasury.

Sounds good unless you are the one who gets to pay off the debt.

Beavis and Butthead should be in a good mood today - finally getting that down day they have been talking about for 3 months