Deficits DO matter.
By Daniel at 21 November, 2009, 2:30 am
The $60 trillion in total public/private is already enough to drown this economy. Not a penny remains for the OTHER $70 trillion (or so) in “unfunded liabilities” which are NOW starting to come due with the retirement of the “baby-boomers”.
It was economic heresy, and simply poor arithmetic for U.S. “economists” to argue that “deficits don’t matter” 30 years ago. But some people CONTINUE to spout such drivel is either a case of hopeless self-delusion or deliberate deceit.
We have already arrived at the point where people/institutions don’t want our paper: The Fed has had to buy up to 70% of treasuries and more of MBSs at the auctions. That is called monetization of the debt, if you didn’t know, and it’s inflationary, anti-individual rights, and very dangerous.
China told Obama to take a flying leap on his recent begging trip to Asia. He got nothing he wanted: Iran, Pakistan, N. Korea, the yuan, trade negotiations, and especially our debt. If you haven’t read what you’re writing about lately, they are now buying short-term debt, so the inevitable rise of interest rates, as the world shuns us, won’t hurt them. Read the recent Chinese papers and you’ll get a taste of the anger the government and people of China have toward out actions over the last decade.
And do a little chartwork yourself. I’ve used the numbers from 4 different agencies that predict future economic conditions and progressive debt, based on present circumstances and Congressional action. Even the most optimistic numbers say we will become and remain a broken, high-taxed, high interest rate country decades into the future; there is no way to avoid a > $100 trillion debt (SS and Medicare can’t be avoided since even if a revolution of the government caused the programs to fail, someone would have to pick up the tab, families, cities, states, etc., which would crush most highly indebted families and local governments).
I could go on for much longer, but I don’t have time. Just do a lot of your own study before making bold statements that can throw off Americans about to lose their country.
- Jeff Nielson
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