Intriguing Counter-Response to Concerns about US Deficit

There is so much coverage of our national (without including personal) debt that it is hard to do anything but nod in agreement. We have to reduce government costs and increase revenue through some form of increase taxation. It is hard to disagree with the end result except to argue over what to reduce and how much and what taxes to increase and how much.

James Gralbraith has written often about economic issues and in his recent interview, he reiterates that the US has no deficit "problem". Admittedly, I find each sentence understandable, but putting his thoughts together into a coherent whole is most difficult. Essentially, I understand that as debt rises, interest rates rise. As interest rates rise, inflation increases. As inflation increases, debt decreases.

He wants us to focus on increasing jobs that address our national needs, e.g., infrastructure and energy renewal.