Grant Interview

This is more raw footage from the documentary Bubble. 

Grant is something of an expert on interest rates. One interesting point Grant made was that if interest rates returned to a more normal rate of 5%, then in order to pay this interest the Federal Government would have to cut spending by 40%. When this is added to the fact that we should also cut spending by 40% right now to balance the budget, we have a potential disaster of 80% cuts in spending. 

I am something of a spending hawk, but even I find this appalling.

I am not worried about the supposed fiscal cliff, I am worried about some combination of factors that leads to a fiscal tsunami if nothing is done in the next 2 to 6 years.

Comments

[Doug Young]

Wow! And 80% cut in federal spending? Something a libertarian can only fantasize about. If that happened, the greatest economic boom in American history would result. Just look at post-WWII. No one would go hungry. No one would go without decent medical care. Old people wouldn't get kicked out of their homes. Rather, with government out of the way and prosperity abounding, charity would be widespread, and less needed. One can only hope.