what's so bad with deficit financing? I'm in an argument

>>1387479
>Im going to put a down payment on my house using a loan. Now I have to pay the mortgage and the loan and the interest on both along with Jose Queervo who cleans the windows to my McMansion every couple of weeks.
>Woe is me, I might have to declare bankruptcy.

>2016
>inflation is a problem

>>1387479
Inflation goes where the money goes. For decades we have been exporting our inflation. One day some black swan event will happen and countries will dump the dollar and all of that inflation and dollars will come back at once.

>>1387726
One day soon*

Deficit spending = expansionary fiscal policy

One of the long run consequences of an expansionary fiscal policy is inflation

But this is because an expansionary fiscal policy results in higher GDP growth (more people in employment, more people spending etc)

Plus right now interest rates are at an historic low. Rich institutions are actually paying for the privilege of holding government bonds (negative rates) in many parts of the world.

If there was ever a time to deficit spend it is now

>>1387511

I really don't understand why you retards think you're entitled to vote or even have an economic opinion when you've clearly never studied economics. News flash, Socrates: Nations are not "big houses".

>>1387479

There really isn't any. In the long run, deficit spending and lower interest rates will cause inflation to rise, but that's an arbitrary notion with the assumption that deficit financing will continue perpetually; expansionary fiscal policies can stop at any time, as do low interest rates. Furthermore, by application of the 2nd derivative test, the rate of rising debt is not of much consequence provided it is smaller than the rate of return from the tax base. This is up to the discretion of the Fed that can account for interest rates and often advises the government on economic issues. You should trust the Fed because they have guys from MIT that lives and breathes this stuff 365 days a year, and we're on an anime imageboard that has weekly "how can I make 3000 bucks in a month".

>>1387874
Nice fucking essay, Bernard

>>1387874
Well, how can I make 3000 bucks in a month?

>>1387479
who is semon demon?

>>1387479
eventually you run out of other people's money

>>1387786
Could someone explain this to me, why would anyone on earth lose money for gov bonds?

>>1387874
>He needs a degree to have an opinion.