| Modern Monetary Theory of a flexible floating fiat currency says that if the government is in surplus than the private sector is in deficit.
There can be no net savings of money by the non-government sector without the government going into deficit.
In more laymen terms, if the government is in surplus, the private sector is losing purchasing power - have less money than they otherwise would (and that can be fine if the economy is going along swimmingly)
Aussies: Welcome to the Rudd Regime
Yanks: Finally someone sensible in the White House
Others: G'day mate. |