Friday, July 8, 2016

In case you didn't read all the way to the end

What I said to Larry Summers last time:
We need to get interest costs down to get economic growth so that we can raise interest rates and undermine that growth. This is your plan for the economy. What's to understand?

Larry, you crack me up. All this focus on interest rates. And no focus at all on the number of dollars on which interest must be paid. You guys cut interest rates, as low as they can go. Now you're trying silly stuff with negative rates -- an act of desperation, to be sure. But you pay no attention to the accumulation of debt. It's the accumulation of debt that created the need for low rates.

Cut debt in half, Larry, and you cut interest costs in half. What's to understand?

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