Re: borodog\'s mistaken understanding of M3...don\'t listen to his drive
Boro has once said the Gov't expenditures "are such a smalll portion of GDP" in reference to a comment on how Gov't debt purchased by foreign nations (China) skews our GDP number. However, from what I've learned, even if the savings rate is as high as 25%, gov't expenditures through these conduits (foreign holdings of national debt) effect the GDP, and subsequent "GDP growth", by a multiple of 4 through the GE Multiplier. Please comment if you think I'm misinformed.
|