{"id":1194,"date":"2011-10-06T19:57:27","date_gmt":"2011-10-06T23:57:27","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=1194"},"modified":"2011-10-06T19:57:27","modified_gmt":"2011-10-06T23:57:27","slug":"americas-debt-crisis-why-europe-is-right-and-obama-is-wrong-spiegel-online","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2011\/10\/06\/americas-debt-crisis-why-europe-is-right-and-obama-is-wrong-spiegel-online\/","title":{"rendered":"America&#8217;s Debt Crisis: Why Europe Is Right and Obama Is Wrong &#8211; SPIEGEL ONLINE"},"content":{"rendered":"<p>American economists, central bankers and fiscal policy makers have reinterpreted British economist John Maynard Keynes&#8217;s clever idea that government spending is the best way to counteract a serious economic downturn &#8212; and have turned it into a permanent prescription. In their version of the Keynesian theory, declining growth or tumbling stock prices should prompt central banks to lower interest rates and governments to come to the rescue with economic stimulus programs. US economists call this &#8220;kick-starting&#8221; the economy.<\/p>\n<p>&#8230;.The only problem is that this method of encouraging growth has not stimulated the US economy in recent years, but in fact has put it on a crash course. From the Asian economic crisis to the Internet and subprime mortgage bubbles, economic stimulus programs by monetary and fiscal policy makers have regularly laid the groundwork for the next crash instead of encouraging sustainable growth. In the last decade, the volume of lending in the United States grew five times as fast as the real economy.<\/p>\n<p>via <a href='http:\/\/www.spiegel.de\/international\/world\/0,1518,789624,00.html'>America&#8217;s Debt Crisis: Why Europe Is Right and Obama Is Wrong &#8211; SPIEGEL ONLINE &#8211; News &#8211; International<\/a>.<\/p>\n<p>With thanks to Barry Ritholz<\/p>\n","protected":false},"excerpt":{"rendered":"<p>American economists, central bankers and fiscal policy makers have reinterpreted British economist John Maynard Keynes&#8217;s clever idea that government spending is the best way to counteract a serious economic downturn &#8212; and have turned it into a permanent prescription. In their version of the Keynesian theory, declining growth or tumbling stock prices should prompt central &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2011\/10\/06\/americas-debt-crisis-why-europe-is-right-and-obama-is-wrong-spiegel-online\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;America&#8217;s Debt Crisis: Why Europe Is Right and Obama Is Wrong &#8211; SPIEGEL ONLINE&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[31,33,34],"tags":[962,1295,1416,1858,2023,2346],"class_list":["post-1194","post","type-post","status-publish","format-standard","hentry","category-the-fed-banks-interest-rates","category-uk-europe-countries-regions","category-us-canada-countries-regions","tag-debt-crisis","tag-euro-zone","tag-fiscal-stimulus","tag-interest-rates","tag-keynes","tag-monetary-policy"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>America&#039;s Debt Crisis: Why Europe Is Right and Obama Is Wrong - SPIEGEL ONLINE - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"America&#039;s Debt Crisis: Why Europe Is Right and Obama Is Wrong - SPIEGEL ONLINE - the patient investor\" \/>\n<meta property=\"og:description\" content=\"American economists, central bankers and fiscal policy makers have reinterpreted British economist John Maynard Keynes&#8217;s clever idea that government spending is the best way to counteract a serious economic downturn &#8212; and have turned it into a permanent prescription. 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Long-term yields are in a cyclical downtrend, driven by speculators. However, long-term bonds are in a secular bear market fueled by fiscal instability and a rising threat of inflation. International capital flows will also dry up\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"Combined Assets of the Fed, ECB, BOJ, and PBOC","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-09-03-cb-assets.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-09-03-cb-assets.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-09-03-cb-assets.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":39792,"url":"https:\/\/thepatientinvestor.com\/index.php\/2022\/12\/21\/nouriel-roubini-we-are-in-a-debt-trap\/","url_meta":{"origin":1194,"position":2},"title":"Nouriel Roubini: &#8220;We are in a debt trap&#8221;","author":"Colin Twiggs","date":"December 21, 2022","format":false,"excerpt":"https:\/\/youtu.be\/ADh6QTp8798 Nouriel Roubini was mocked by the media -- who christened him \"Dr Doom\" -- because of his prescient warnings ahead of the 2008 global financial crisis. He has now published a book identifying 10 mega-threats to the global economy. First and foremost is the debt trap. Private and public\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/img.youtube.com\/vi\/ADh6QTp8798\/0.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":27803,"url":"https:\/\/thepatientinvestor.com\/index.php\/2021\/09\/09\/low-interest-rates-and-the-debt-trap\/","url_meta":{"origin":1194,"position":3},"title":"Low interest rates and the debt trap","author":"Colin Twiggs","date":"September 9, 2021","format":false,"excerpt":"Since 1980, debt levels have more than doubled, from 1.4 times GDP to more than 2.8 in Q1 this year. The rise has been facilitated (and encouraged) by a sharp fall in long-term interest rates, with 10-year Treasury yields falling from a peak of close to 16% in September 1981\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":57330,"url":"https:\/\/thepatientinvestor.com\/index.php\/2024\/09\/05\/china-hits-minsky-iceberg-macrobusiness\/","url_meta":{"origin":1194,"position":4},"title":"China hits Minsky iceberg | Macrobusiness","author":"Colin Twiggs","date":"September 5, 2024","format":false,"excerpt":"From David Llewellyn-Smith at Macrobusiness: Stability leads to instability is China\u2019s problem. Central planning has for so long hit growth targets via stimulus that its economy is now a debt-saturated laggard that spends so much repaying interest on unproductive assets that it can\u2019t grow. Nowhere is this more obvious than\u2026","rel":"","context":"In &quot;China &amp; HK&quot;","block_context":{"text":"China &amp; HK","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/china-hk\/"},"img":{"alt_text":"China: Local Government Refinancing","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2024\/2024-09-05-china-bondissues.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2024\/2024-09-05-china-bondissues.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2024\/2024-09-05-china-bondissues.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":21731,"url":"https:\/\/thepatientinvestor.com\/index.php\/2020\/09\/30\/why-todays-fiscal-stimulus-is-not-like-wwii-eric-basmajian\/","url_meta":{"origin":1194,"position":5},"title":"Why Today&#8217;s Fiscal Stimulus Is Not Like WWII | Eric Basmajian","author":"Colin Twiggs","date":"September 30, 2020","format":"video","excerpt":"https:\/\/youtu.be\/Rq5aBHsz0V0","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/img.youtube.com\/vi\/Rq5aBHsz0V0\/0.jpg?resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/1194","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=1194"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/1194\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=1194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=1194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=1194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}