I decided to ask a question using LinkedIn today, because I haven't heard a good answer from anybody. I figured I'd post the same question here - if you have any thoughts, please comment or send me an email. The question was:
So, over the past year or so, I've been reading quite a few books on economics and risk management. Recently, it seems that there is a spate of books (The Dollar Crisis, Maxed Out, and America's Bubble Economy to name a few) that detail the risk that large budget and trade defecits and high consumer debt loads have created for the US economy as a whole.
Now, I'm pretty clear that I understand the nature of the risk that debt provides, but what I've yet to see is a valid counter-point to the "we're coming to a big fall" point of view. I've heard economists (and Dick Cheney) articulate that "defecits don't matter", but I've yet to see a good explanation why.