Lots of Debt

(1) China’s engine running on bank loans. (2) No credit crunch for China as long as inflation remains subdued. (3) Chinese bank loans funded by Chinese depositors. (4) Less and less bang per yuan? (5) CBO projecting $1.2 trillion per year, on average, in federal budget deficit through 2028. (6) Public debt set to double again over next 10 years. (7) CBO not drinking supply-side Kool-Aid. (8) Interest paid by federal government set to triple over next 10 years. (9) Will tax cuts lift potential GDP’s growth rate? (10) Budget deficit may or may not matter when inflation is low, but will definitely matter if inflation rises.