http://globaleconomicanalysis.blogspot.com/2011/07/preposterous-statements-jim-rogers-no.html
Failure of Japan
It amazes me that apparently bright people can neither think nor see. Biggs is proposing the same medicine Japan tried. Where did it leave Japan? After 20 years of infrastructure projects, Japan has government debt to the tune of 200% of GDP and is still mired in deflation.
Looking Down the Road
Demographics and debt levels now are both far more precarious than they were in the 30's and 40's. Worse yet, Davis-Bacon and prevailing wage laws guarantee government will overpay for what it gets.
What if we tried the idea anyway? What if we fixed everything in 5 years?
The economy would boom for 5 years, then what? How would the US pay back that debt? What would happen to jobs the moment the projects finished? How would our children and grandchildren pay back that debt?
No Painless Solution, No Free Lunch
The very last thing the US needs is a massive infrastructure program paid for via the printing presses. Instead, we need to cut military spending, scrap Davis-Bacon, scrap prevailing wage laws, get rid of government workers, reduce public worker pensions, and get the budget in shape before the US becomes the next Greece.
Will that cause pain? Of course it will. However, Biggs wants a free lunch. If printing money solved problems, Zimbabwe would be the wealthiest nation on the planet.
Biggs Cannot See, Hear, Think
It would help if Biggs could look at Greece, or Spain, or Portugal, or Ireland. Those countries show what happens when debt gets excessive and the bond market takes matters into its own hands.
The logical conclusion is Biggs is cannot see, hear, or think.
Perhaps Biggs is simply talking his short-term book with complete disregard to what his proposal would do to our children and grandchildren, so that he could have one last party.
Failure of Japan
It amazes me that apparently bright people can neither think nor see. Biggs is proposing the same medicine Japan tried. Where did it leave Japan? After 20 years of infrastructure projects, Japan has government debt to the tune of 200% of GDP and is still mired in deflation.
Looking Down the Road
Demographics and debt levels now are both far more precarious than they were in the 30's and 40's. Worse yet, Davis-Bacon and prevailing wage laws guarantee government will overpay for what it gets.
What if we tried the idea anyway? What if we fixed everything in 5 years?
The economy would boom for 5 years, then what? How would the US pay back that debt? What would happen to jobs the moment the projects finished? How would our children and grandchildren pay back that debt?
No Painless Solution, No Free Lunch
The very last thing the US needs is a massive infrastructure program paid for via the printing presses. Instead, we need to cut military spending, scrap Davis-Bacon, scrap prevailing wage laws, get rid of government workers, reduce public worker pensions, and get the budget in shape before the US becomes the next Greece.
Will that cause pain? Of course it will. However, Biggs wants a free lunch. If printing money solved problems, Zimbabwe would be the wealthiest nation on the planet.
Biggs Cannot See, Hear, Think
It would help if Biggs could look at Greece, or Spain, or Portugal, or Ireland. Those countries show what happens when debt gets excessive and the bond market takes matters into its own hands.
The logical conclusion is Biggs is cannot see, hear, or think.
Perhaps Biggs is simply talking his short-term book with complete disregard to what his proposal would do to our children and grandchildren, so that he could have one last party.
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