Are you worried that we are passing our debt on to future generations? Well, you need not worry.<\/p>\n
Before this recession it appeared that absent action, the government\u2019s long-term commitments would become a problem in a few decades. I believe the government response to the recession has created budgetary stress sufficient to bring about the crisis much sooner. Our generation \u201d\u201d not our grandchildren\u2019s \u201d\u201d will have to deal with the consequences….<\/p>\n
The question we need to ask is this: If we don\u2019t change direction, how long can we travel down this path without having a crisis? The answer lies in two critical issues. First, how long will the capital markets continue to finance government borrowings that may be refinanced but never repaid on reasonable terms? And second, to what extent can obligations that are not financed through traditional fiscal means be satisfied through central bank monetization of debts \u201d\u201d that is, by the printing of money?<\/p>\n