Unemployment and the deficit

Deficits drop, unemployment increase, mainly because velocity of M1 increases. In fact, deficits generally precede unemployment. Why is that? Because deficits come from the unbalanced channel and the unbalance is the cause of unemployment. Krugman wants to increase deficits.  He wants that so government can pay for losses on current programs. Bu government losses are government losses, whether government acknowledges them or the private sector acknowledges them, the result will be the same, a downturn. Acknowledged losses are paid for, government losses are paid for with deeper downturns because they are deeper losses.