Few economists understand our monetary system, James K. Galbraith, son of famed economist John Kenneth Galbraith does. In this easy to read paper put out by the Levy Economics Institute he examines the course of America’s federal debt. As you may expect, he has a much different view on whether our federal debt is unsustainable, in fact he demonstrates how it is sustainable and what those conditions may be.
Keep in mind that I’m not posting this as an endorsement of endless deficits, but to provide a different view of our monetary and fiscal policy than you hear in the mainstream (and even blogosphere) media. The next two years will feature politicians who proclaim things that are utterly false and provably so.
Scott Dauenhauer CFP, MSFP, AIF