Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
leverage is merely a description of income : debt levels

Leverage is a description of income : debt levels ... and that is the core problem, not the debt levels, but the debt/income ratio, since a political economy that rests on an increasing debt/income ratio is a financially unsustainable political economy.

And the ability to take on debt for the purpose of growing real income ... for instance, for the electrification of STRACNET and the reduction of the energy cost of long distance freight transport shifted onto electric rail by over 90% ... is undermined if we permit the deleveraging process to run as a ratchet that reduces the private debt/income ratio at the cost of increasing the income claims of those looking to convert fantasy wealth to real wealth.

However, the 60 vote hurdle in the US Senate has a big hole in it at the point where a budget bill get scored as not requiring a waiver of PAYGO requirements. That is when the US legislative process defaults to the Two Chamber Majority system of its original design.

I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Mon Feb 9th, 2009 at 03:20:41 PM EST
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