This risk, while real, is greatly overstated out of fear of inflation. The bottom line is that we never question the inflationary pressure of private sector debt but assume that public sector debt is automatically inflationary. Private sector debt is not only equally inflationary but also carries the risk of default that can never be an issue with a sovereign fiat currency.

Only acknowledging the difference between private and public debt allows us to escape the need to constantly grow the consumption economy and the risk that goes with that. In a global economy that is inevitable, we also place ourselves at risk if we can’t be competitive. There are more “gifted” students in China than total students in America, so limiting higher education to the inbred spawn of the wealthy is not a plan for success. Ditto for our healthcare and infrastructure that our commerce depends upon.

Our biggest risk at the moment it deflation, not inflation, but it isn’t even on the radar for most economists or representatives. Another cycle such as we saw in ’08 will result in 1) even more massive public debt from bailouts with no, zero, nada productive offsets or 2) an economic retraction that will make America a third world country with no production capability or supply chain to leverage our way back.

If you hold massive wealth already you, if you are a devout capitalist, might actually prefer 2. It is the path to fascism and complete corporate power.