The U.S. is doing a lot of deficit spending right now on top of the debt already accumulated. Whether or not this is necessary (I think it is, but what do I know), it obviously can’t go on forever and ultimately, we need to reverse a bit. So what is the plan? Wait for the business cycle to expand and return to balanced budget spending? Attempt to run a surplus and pay down the debt? Are there any triggers that policy makers are waiting for in order to do whatever it is they are going to do?
Thanks,
Rob