>
Deficit spending.
If I were to consistently spend more than my income, at some stage I’d have an overdraft with the bank.
And at some stage, my bank consultant would have a chat with me about fiscal responsibility, that continuing on this slippery slope will end in tears and – more importantly – had I wasted a thought about paying it back at some stage in the near future?
I have a friend who’s in this predicament.
My friend’s name is the Federal Republic of Germany and last year my friend overdid it a bit.
Spent €320bn against an income of €240bn, which puts my friend €80bn in the poo.
Just for the year.
My friend’s banking consultant (the German Constitution) says that the maximum overdraft is capped at €70bn, so my friend has to either increase his income by €10bn or stop spending by an equivalent amount.
Or a combination of both.
And it’s not the first time that this has happened, of course.
In fact, my friend’s bank consultant appears to have been pretty slack in past years/decades, because my friend now owes (a mere) €1,700,000bn (that’s 1.7 quadrillion or quantillion, not quite sure which) and hasn’t even asked my friend about a strategy for paying it all back.
My contribution – so said the newsreader this evening on the 8 o’clock news – is €21,000.
I’m expecting a knock on the door any minute.
As I say – I don’t really get this, but I’m sure one of my professor mates can explain it to me in words of less than 3 syllables…….





















You must be logged in to post a comment.