Deficit spending

Both the Icelandic government and my little project have ventured out somewhere we would rather not be, the realm of deficit spending. 

I always found this phrase amusing, because it has such a mixed connotation. It is actually a paradox, one utilized by both the right and the left. How can one spend money one does not have? Ah, but one cannot make any money to pay off the debt unless more money is spent fixing the problem. 

Businesses who are able to do this, are able to borrow more money when they are in debt, are companies that may have a cash flow problem, but they at least are not operating with a trust deficit. Much more important, then, than avoiding deficit spending is to do whatever is necessary to avoid a trust deficit. 


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