Kevin Gowen wrote:
> Ken wrote:
> 
>>Kevin Gowen wrote:
>>
>>>Eric Takabayashi wrote:
>>>
>>>
>>>>Kevin Gowen wrote:
>>>>
>>>>>What's wrong with deficit? Don't you engage in deficit spending?
>>>>
>>>>No.
>>>
>>>Then you are very rare. Most people do, with the most obvious example
>>>being home/real property ownership.
>>
>>I can't believe I'm wasting time replying to a barrel bottom student
>>like Gowen who is still deluding himself with the notion that he
>>understands topics and issues he's obviously too stupid to grasp.
> 
> I can believe it. I am simply irresistible.

To the extent that deformity specimens can be clinically intriguing, yes.


>>Gowen, do you really believe that "most people" who apply for a home
>>loan are allowed to borrow more than the assessed value of the
>>property they are acquiring?  Furthermore, do "most people" with a
>>home loan have an outstanding debt figure that *increases* with time?
> 
> What's your point? You surely aren't refuting my statement that most
> people engage in deficit spending.

The refutation isn't obvious only to dimwits like you.
Considering your chosen "obvious example" which purportedly shows that
"most people" who buy homes engage in "deficit spending", do such people:

1) from a "cash flow" standpoint, borrow such amounts that their yearly
   interest and principal payments *exceed* their yearly income?

2) from a "balance sheet" standpoint, find themselves in a negative equity
   situation as their liabilities -- e.g. their real estate loan -- exceed
   their assets -- e.g. the house they've bought with the loan?

Care to point out where the "deficit" would be in these homebuyers'
spending?


>>As to the government, what can be found on the asset side of their
>>balance sheet which might match its ballooning financial liabilities?
>>If there's nothing wrong with deficit spending, why impose limits on
>>it at all?
> 
> Indeed. There is nothing wrong with eating food, so there is no reason
> why a person should not consume 30,000 calories of butter a day.

So it's related to people's appetites, then?  Increased money supply
caused by government profligacy should increase the citizens' average
bank balances.  At what point would people start to complain that their
bank accounts are simply too full and that they will not accept more
money?


>>Anyway, the latest US statistics indicate an average household saving
>>rate of about 1%, which is a POSITIVE figure.  "Most people" engage
>>in "deficit spending"?
> 
> In the U.S. they sure as hell do. Just because you are saving money does not
> mean that one does not engage in deficit spending. I have a savings account
> into which I make weekly deposits yet I have a deficit of six figures.

You neither know nor understand the meaning of terms like "household
saving rate".  You also seem to think you can base yourself upon your own
statistical sample of one to pontificate about the financial behavior
of the entire US populace.  Mildly amusing, if it wasn't so inept.
Anyway, maybe in Gowen's mind, any person with some financial liability
engages in "deficit spending".  If I forget my wallet at home and borrow
some money from a colleague to pay for my lunch, I'm a deficit spender...


>>In GowenWorld, perhaps, but not in the US of
>>A, or in Japan, or in the EU for that matter...
> 
> Certainly in the US. I don't know about Japan.

Tut tut.  You don't know anything about the US either.


> AFAIK, the EU is not a country.

I guess we'll have to tell the European Commission to stop bothering
collating and publishing economic indicators about the EU as they are
"not a country" and their figures are therefore obviously meaningless
or irrelevant...