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James Galbraith: There’s Absolutely no Crisis in the Public Debt of the USA

James Galbraith does a fair bit of myth busting here. This is a must watch. The only thing I don’t like is where he says he agrees with Dick Cheney on the idea that “deficits don’t matter”. When discussing the idea of an autonomous contingent currency issuer (see here) we have to be very clear that deficits definitely do matter in that they could cause high inflation or any other number of potential negative side effects for the economy. But overall, this is an excellent interview and Professor Galbraith does a fantastic job getting to the point:

 

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