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Wednesday, November 7, 2012

The Black Hole of Debt

John Mauldin offers a very interesting simile of debt with black holes.

one small quote:
Keynesian theory prescribed deficit spending during times of business recessions and the accumulation of surpluses during good times, in order to be able to pay down debts that would inevitably accrue down the road.
The problem is that the model developed by Keynesian theory begins to break down as we near the event horizon of a black hole of debt.

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