Government Shut Down

Lamplighter · 10-11-2013, 03:49 PM

Glatt, "deficit" is for a particular period of time, whereas "debt" is the cumulated deficits

So I look on GDP as the total output of energy and resources ($) of the country.
So, looking at a given year's deficit as a %GDP is a measure of what
the country would have to expend to reduce that deficit (to zero).

OTOH, higher inflation has the effect in future years of
reducing the subsequent debt-to-%GDP ratios
... i.e., older debts can be paid off with "cheaper" dollars

BUT, I'm open to being educated out of the error of my ways.

.

10-11-2013, 03:49 PM	#10
Lamplighter Person who doesn't update the user title Join Date: Jun 2010 Location: Bottom lands of the Missoula floods Posts: 6,402	Glatt, "deficit" is for a particular period of time, whereas "debt" is the cumulated deficits So I look on GDP as the total output of energy and resources ($) of the country. So, looking at a given year's deficit as a %GDP is a measure of what the country would have to expend to reduce that deficit (to zero). OTOH, higher inflation has the effect in future years of reducing the subsequent debt-to-%GDP ratios ... i.e., older debts can be paid off with "cheaper" dollars BUT, I'm open to being educated out of the error of my ways. .

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