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But the ability to run deficits during the downturn has no relation to your ability or will to run surpluses during the upturn.
Not if you keep devaluing your currency through inflation or repeatedly default on government debt. But if you actually want to have a sustainably good economy, you need to repay debt (as a fraction of GDP) when things are going well, if you want to do deficit spending when the economy is bad. Otherwise you'll end up as Greece. You can't spend more than you earn indefinitely. Eventually something will have to give.

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Wed Dec 14th, 2011 at 11:33:13 AM EST
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