“Rising yields on the back of the U.S. credit downgrade is indicative of what will occur if Washington does not curb its appetite for unsustainable spending and low taxes.” Those are the words of RSM’s Joe Brusuelas. That he’s chief economist for RSM is excess, and can be seen in his analysis of the national debt.
Explicit in Brusuelas’s comment is that Treasury debt is an effect of too little tax revenue and too much government spending. The analysis is another clue that Brusuelas is an economist. To see why, think about how things operate in actual markets.
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