You can’t get Blood from a Stone
In the hope that someone in the EU reads it:I: Inflation is a tax. Create inflation when salaries are stale and spending will collapse
II: Printing money is stealing funds from savings and from efficient companies to give it to inefficient and indebted governments.
III: Trying to increase tax revenues to bubble-period figures is impossible. Those revenues disappear when the bubble bursts. You have to bring spending to pre-bubble levels.
IV: Increasing spending and debt means passing the bill or the consequences of a default to our children.
V: Offsetting private investments with government spending assumes that politicians are better managers and investors than private entrepreneurs.
VI: More taxes, less growth, less revenues. Same spending, more deficit. More debt, bigger hole.VII: Increasing debt today is to assume that we deserve to spend today the expected productivity and efficiencies of the future.
VIII: If our policy is that countries don’t have to worry about debt because governments don’t need to pay it we shouldn’t be surprised with increased cost of borrowing.
IX: Increasing public spending today assumes that the same governments that made spending mistakes in the past will now change their way and do it well.
X: If a country’s debt is “low” and its cost “manageable” yet demand for its bonds is collapsing and costs soaring, the debt is neither low nor manageable.