www.reuters.com WASHINGTON (Reuters) – The US Senate approved a 6 billion military spending bill on Saturday that funds the wars in Iraq and Afghanistan and also includes money to extend jobless aid and Medicare payment rates for two months. Barack Obama By a vote of 88-10, the Senate approved the bill and sent it to [...]
, interest rates on the loans will have to increase. [slide15]The problem with both of these outcomes is that they lead directly to even MORE inflation. This type of thing has happened in numerous other countries in the past. It happened to Germany after World War I, and it’s happening to Zimbabwe now. [slide16]As this [...]
more consumption and less saving aggravate the shortage of saved-capital even further. Government can encourage consumption by “food stamp plans” and relief payments. It can discourage savings and investment by higher taxes, particularly on the wealthy and on corporations and estates. As a matter of fact, any increase of taxes and goverment spending will discourage [...]