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This week all -- balances on -- Abdullah is down.
Joining me now it more -- professor John tighten up from Stanford University a senior fellow at the Hoover Institute.
So -- professor welcome to the program very good to have you with us.
We read your piece in the -- -- -- times the other day we we can't not know that one.
-- massive borrowing massive spending.
Can you give us in the -- humans -- what it means the UN on.
Well as a couple waited for a couple ways to think about it first of all of if the government one of the raise taxes to cover this deficit it would mean a 60%.
Tax increase six -- so that would be terrible.
Not gonna happen.
The alternative when people talk about it's gonna result in a large inflation.
-- 100% inflation over ten year period and of course that means as you say.
A lower value for the dollar go lower value for a lot of other things we want -- So I think it's problem that the other is a good news here -- it by talking about it we can make a difference sweeping changes that -- -- -- not -- has just doesn't that mean a change of course.
Follow the federal government policy on spending money and do you see of a change of course is being -- in the future.
I don't see that's not my projection at this point I'd say it's it's my hope and I think the point is if people understand.
The issue for example -- -- -- Projecting deficits of a trillion dollars 510 years from now that's not helping the economy now.
There's no rationale for that so I think my experiences as people understand what's going on they'll say hey.
Let's not do this and there's the hope to to do this correction which is essential in my view to keep.
America strong and keep our economy -- his life here all the time we just print the money.
The Federal Reserve has the -- to create money in the vernacular about his printing money.
We just create the money to pay off -- that's that's what we gonna do isn't.
Well that's the fear that's the concern that doesn't have to happen.
You know and we've had good economic performance and much of the eighties and into the ninety's.
We had inflation was low we have long expansions -- a couple recessions which were pretty minor compared to this one so doesn't have to be like where we are right now.
The Federal Reserve.
Doesn't print all this money as you're concerned about and many others.
Things could be a lot better so I'm I'm working on trying to explain this to people so justice just to sum it up well we on now if we keep going like we saw.
Then the dollar keeps going down interest rates go up and inflation starts to rise that's what we're faced with as of right now is that -- professor.
Absolutely that's a concern absolutely and understand the reasons -- this exploding debt.
Huge deficits and Federal Reserve and a position to finance those with pretty money just as you say professor doesn't have to be this way they did indeed.
Professor John Ty Law economics professor at Stanford University thanks for joining us that we appreciate it.
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