No. of Recommendations: 1
There is essentially no prospect of falling US deficits in the next decade, and the most noteworthy flip side of massive public sector deficit is massive corporate sector profits, which is the primary reason profits have soared to previously preposterous levels as a fraction of US GDP in the last 10-20 years.
Thanks for reminding me of this cause of high corporate profits, which I believe Hussman often mentions. I always find it easy to remember the twin causes of lowered corporate tax rates and lowered interest rates, but not as easy to remember this one.
Would it be fair to say that the massive public deficit is the disease, and the other two (reduced taxes & interest rates) are merely symptoms, or subsets of the former?
