The Cost of Debt

Subject: txt mny -

"Because of its repeated efforts to stimulate the economy through fiscal policy**, Japan now faces a serious debt problem (Japan's debt-to-GDP ratio has nearly doubled in the last decade, rising from 0.58 in 1991 to 1.1 in 2000)."

Robert H. Rasche and Daniel L. Thorton
of the Federal Reserve Bank of St. Louis.

Long-Term US Federal Debt Projections ("Alternative" policy being more likely)

Source: General Accounting Office.

Percentage growth in real (inflation adjusted) GDP per capita from 1991 to 2000

In the US: 24%.
In France: 16%.
In Japan: 7%.

Source: Computed from US Statistical Abstract, Table 1306

[We did well - but now that we're following Japan's 'fiscal policy', **a.k.a., 'stimulus', what should we expect?

{Hint: think Einstein quotes...}]
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