John Cochrane Destrói os Campineiros de Biden

John Cochrane demole os argumentos dos petistas a la Unicamp que assessoram o pior governo Americano desde Jimmy Carter: 

Does debt matter? As the Biden administration and its economic cheerleaders prepare ambitious spending plans, a radical new idea is spreading: maybe debt doesn’t matter. Maybe the United States can keep borrowing even after the COVID-19 recession isover, to fund “investments” in renewable energy, electric cars, trains and sub- ways, unionized public schools, housing, health care, child care, “community development” schemes, universal incomes, bailouts of student debt, state and local governments, pensions, and many, many more checks to voters. T he argument is straightforward. Bond investors are willing to lend money to the United States at extremely low interest rates. (…)

The end must come in sharp and sudden inflation or default. And that is a catastrophe. When Washington can no longer borrow, our normal crisis-mitigation policies disappear—the flood of debt relief, bailout, and stimulus that everyone expects—together with our capacity for military or public health spending to meet the roots of the crisis. Yes, the United States prints its own money and Greece does not. But that fact only means that a crisis may end in sharp inflation rather than chaotic default. And it is not obvious that the US government will choose inflation over default. Will Congress really prioritize paying interest to, as it will see them, Wall Street fat cats, foreign central bankers, and “the rich” who hold US debt, over the needs of struggling Americans? Will our elected officials really wipe out millions of voters’ savings in a sharp inflation rather than devise a complex haircut for government debt? Don’t bet on it. But if bond investors smell a haircut coming, they will flee all the faster