Easy Lending Solves Overspending Problem?

Given: Financial markets are troubled by the poor fiscal situation of governments around the world as they are spending much more money than they collect in taxes.

Find: What is the best way to improve financial market performance?

Solution: Obviously, the solution is to make it easier for governments to borrow more money so they do not need to cut back on their spending.

Does this make any sense at all? We are in a repeating pattern where governments should be cutting their spending or increasing their tax revenue to reduce deficits, but instead they keep getting easier access to more borrowed money.

It seems like we are delaying the day of reckoning, and by increasing the amount of money owed we are also making the eventual reckoning much more painful.

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