Saving and Spending | By Whom and On What Schedule | Black Swan Capital

We have here a fiscal gridlock - better call for backup ...

I would like someone to write in to me and explain my narrow-mindedness, my myopia, or my plain ignorance of fiscal policy. I've heard the argument several times before - when the private sector is saving, the public sector needs to balance that savings by spending. The biggest problem is that the US public sector spends even when the private sector is spending. I recently skimmed through a publication put out by the Bank of International Settlements -The real effects of debt - that discuss why and how debt drives economies these days. I plan to dig into it more another time, but today I wanted to share this one little paragraph that conveys the above point: Currency Currents 9 September 2011