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IPFS News Link • Economy - Economics USA

Latest Thinking: "Balanced Budgets are Insane"


Balanced budgets are not insane. Expecting socialism, Keynesianism, or MMT to work ... That's Insane.

Of course, France has no chance of balancing its budget.

abend237-0423 hrs

Being out of this 'market' while waiting for the next crash, I've taken to studying The Roman Empire. The similarities are amazing...and ominous. Coin clipping and/or metal debasement were the preferred ways of running budget deficits, or stealing from the treasury, in those pre-Keynesian times. My personal favorite episode, and I believe most apropos of our time, was late 3rd century a.d., during Aurelian's reign. From 270 to 275, this amazing road warrior led legions in defeating numerous mutinies and invading enemies of Rome. While he was thus occupied, the Roman one-percenters of the time began debasing the denari by lowing it's silver content. Inflation ran wild, (limited goods being chased by unlimited currency), impoverishing farmers in the countryside. It became such an entrenched practice, and vehemently defended by many Romans become dependent on the 'take,' that Aurelian had to engage an army they raised with his own legion to defeat the movement. Having the backing of most of the country, he promptly tried and executed the perps, thereby instantly taking the fun and profit out of late third century Roman budget deficits. We're unlikely to see such a man as Aurelian in our time.