George Soros says US should take on more debt
George Soros spoke to Bloomberg Television about the U.S. economy yesterday, specifically the debate over cuts versus government spending. Soros argues that the U.S. should take on more debt and spend it on infrastructure.
“How much debt is too much and when should you tighten? We’re in the midst of a difficult, delicate, two-speed maneuver.
“If you have a growing economy, you can tolerate a high level of debt. If you have an economy in recession, and too much debt, you get into what’s called a debt trap.”
“We can issue our own currency in the U.S., and the dollar is quite strong.”
“There is a danger than, by pushing budget cuts too far, you can endanger it. I fear political forces are going to force the economy back into recession. The U.S. economy could absorb some more debt to get the economy going. If you use it to reinforce consumption, you get no benefit from it. Building infrastructure or improving productivity is where it should be used. ”
“The U.S. dollar is considered to be riskless, but it’s a question as to the degree of future inflation. One way to decrease the future weight of debt is to have inflation.”
Read more George Soros quotes here
Read more: http://www.businessinsider.com/george-soros-us-more-debt-2011-4#ixzz1JDqXAn9w
The Desk of Brian recommends:
George Soros warns of riots, government clampdown and financial collapse
George Soros hearts Mitt Romney VIDEO
George Soros: EFSF must take control of Europe’s banks
George Soros donates $1 million to Media Matters
Who are the real plutocrats? Krugman, Obama, banks & bailouts
Krugman: Create wealth by shutting down electric power plants
What will Greece do: default on it's debt or leave the Eurozone?
Krugman Discovers the Dastardly “Plot” in Wisconsin
