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| FalcoFrog: "As long as the currency is free floating and not pegged to gold or another currency deficit spending works and as long as the country isn't in debt in something other than its own currency. This is why Turkey, Argentina, and Venezuela are having issues."
This is from the thread about history repeating itself from last week..... I missed it at the time but wanted to ask you about it a little bit.
How do state deficits fit into this equation? Illinois, California, and some other states seem like they're on a bad path and some municipalities are even further down the same path. Do they just get a government bailout with a fresh cash print sent their way or does the Fed just push around some paper to make it work or does the Fed let them hang themselves with too much leash? Or is there a different ending? Or does it just depend who's the boss (it's Tony Danza btw) at the Fed when the moment of reckoning comes?
Wondering if some state bonds would be a decent investment in the right situation....
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Question for Falcofrog
