"Dave Hall" wrote in message
news
On Fri, 11 Mar 2005 05:51:39 GMT, "Calif Bill"
wrote:

You really have a warped view of economics. Does not matter what
entity,
it
can not borrow forever, no matter it's lifespan.

But we're not "borrowing forever". A country will have economic ups
and
downs. In the "down" years, net tax receipts fall, and deficits
surge.
In
the "up" years, net receipts rise, and the deficits shrink. Since a
country
like the US has an infinite lifespan, *AND A CONSTANTLY EXPANDING
ECONOMY*,
it can weather long, long periods of deficits without any adverse
affects.



You get to the condition
on countries of Brazil, 15-50% inflation. Germany, after WWII
when
the
paper was worth more than the money printed on it. Inflation is a
tax!


And what is the current inflation rate in the United States?



About 2.5%.


Which is lower than it averaged for the 80's and 90's. In 2000, there
was
a
surplus, yet inflation averaged 3.38%. Your argument that a high
inflation
rate is the result of an increasing deficit just doesn't seem to agree
with
recent historical data.


What was the unexceptable inflation rate when Nixon put in wage
and price controls? 3.5%. At 2.5% costs will double in 28 years.


If you can't afford to pay $6 for a gallon of milk 28 years from now,
then
there's something wrong with your investment portfolio.




There is the problem with paying $6 / gallon as it is the young family
that
is trying to raise kids and does not have a 40 years investment
portfolio.

Fret not. By then the minimum wage will be $15/hr and the poverty line
will be $60,000 per year. It's all relative.

Dave

We can eliminate poverty now. Make the minimum wage 80% of congressional
salaries.