Re: Why am I having awful Reagan flashbacks?
And thank God for those interest rates. When more (historically) typical rates were in effect, the % of our budget that went to interest was not the current 11%, it was as high as 30%. It is naive to think that we will continue to have this benign interest rate environment. As we float all those 6 month and 1 year T-bills we leave ourselves incredibly vulnerable to any increase in short term rates. Tacking on even more debt isn't prudent. Yes, using debt can be optimal. That isn't the case right now IMO.
As far as the myth of the Reagan "spending the Commies into defeat", its just that. The USSR was going to collapse regardless.
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