http://www.zerohedge.com/article/lawrence-kotlikoff-fed-and-treasurys-actions-are-equivalent-child-abuse
A few months ago we linked up to a Bloomberg interview with Boston professor Lawrence Kotlikoff who provided his justification for why the US is currently bankrupt (something about a few hundred trillion in off-balance sheet liabilities). Back then Koltikoff, aiming squarely at a specific NYT Op-Ed columnist, said "some doctrinaire Keynesian economists would say any stimulus over the next few years won’t affect our ability to deal with deficits in the long run. This is wrong as a simple matter of arithmetic. The fiscal gap is the government’s credit-card bill and each year’s 14 percent of GDP is the interest on that bill. If it doesn’t pay this year’s interest, it will be added to the balance. Demand-siders say forgoing this year’s 14 percent fiscal tightening, and spending even more, will pay for itself, in present value, by expanding the economy and tax revenue. My reaction? Get real, or go hang out with equally deluded supply-siders. Our country is broke and can no longer afford no- pain, all-gain 'solutions'." And just because nothing has changed, the professor is back to the crime scene this time making an even stronger case of bashing America's oligarchy for not daring to set off on the much needed path of austerity, something even the stereotypically more "fear-prone" French are willing to do (and strike every day along the way). Kotlikoff says: "This massive Ponzi scheme is turning the American Dream into the American Nightmare" adding that what the Fed is doing now is equivalent to "child abuse" and adding "If things continue as we adults have planned, our nation’s debt, measured as a share of gross domestic product, will reach Greek levels just when the grandkids start heading to work. At that point, simply stabilizing the debt-to-GDP ratio will require raising taxes by 50 percent, thereby lowering the grandkids’ living standard from 74 to 61." And it gets much worse. Read on for Kotlikoff's view on why the Fed should be banned by the Geneva Convention
