Posted on 08/16/2009 11:25:42 AM PDT by AlaskaErik
Alaskans should care about the national debt and the deficits that keep it growing because if it is mismanaged, Alaska may catch a cold from lower oil prices, reduced tourism and higher interest rates.
But neither Alaskans nor other Americans need to fear the national debt as if it were some sort of looming catastrophe threatening us, our children and our grandchildren.
Most fear of the national debt is unfounded and more of a threat than the debt itself.
Here is why. The national debt will never be paid off and should never be paid off.
The notion that the national debt places an unfair burden on future generations is largely, not entirely but largely, political hooey! Let me say that again: the U.S. national debt should never be paid off. In fact, a worldwide financial disaster would be triggered if more than a fairly small fraction were ever paid off.
(Excerpt) Read more at adn.com ...
If you eat at another man’s table, you will do another man’s will.
It’s just a matter of time.
How can anybody take these media stooges seriously.
This neo-Keynesian garbage has been disproved so many times it is not worthy of a response.
Debt in itself is not a bad thing, the problem with Washington is they abuse the privilege and get us into deficit, and deficit is not just bad it is evil!
The interest rate on treasuries is just pacing the rate of inflation in the dollar. If the US spent what it earned, we would see a much stronger dollar. The "risk free" investment the author desires would be cash dollars, which would not have to be risked at all just to keep up with inflation.
Yes all you need to do is learn to bow when the Chinese own the room. Yes sir, yes sir table scraps would be fine sir, yes sir.
Its amazing how he just blows past the worst problem of all—how to pay the increasing interest bill on the increasing debt. What a moron.
Inspiring speech!
I’ll now go out and run up unpayable credit card debts as I am now enlightened.
Truly the Zimbawee Govt shows genius we must emulate.
They may have a point, as I have a difficult time imagining a 21st Century in which Alaska DOES NOT leave US control (and thus US debt obligation), either by annexation/union with another nation, or outright independence, either on purpose or by default.
In 2008 we spent 450 billion dollars paying just the interest on our national debt.
That is about the size of what our government’s spending should be on constitutionally authorized programs. Defense, postal roads, legislative, executive and judicial branches of government.
This is foolishness tirade.... and crazy.
Wow. What a dolt.
Our debt is a national security emergency. We need to stop it immediately with a balanced budget amendment to the Constitution. Borrowing should only be allowed sparingly during the most dire of emergencies, like four or five years into a declared war.
Hoorayyyyyyyy! We have reached financial nirvana. Debt doesn’t matter! I can tell you as an accountant that if debt doesn’t matter we have endless financial possibilities.
A new paradigm has been reached. Bigger than finding out the world is not flat. Bigger than inventing the wheel, Heck bigger then the return of Christ! Well, maybe not THAT big but big nonetheless...
I just love people with big brains who can figure all this stuff out.
I will also and am very interested in the responses.
I see debt as a tool. All tools have a cost. If that tool can be used to create wealth, that tool has the potential of being a useful tool. Just how useful depends on how much wealth it actually creates - not ust potential, actual.
Unfortunately, the government uses debt as a tool not only for it's potential to create wealth, but apparently for it's potential to consolidate power and gather favors.
Wrong job for the tool.
The concept of carrying debt is as old as dirt. Debt is an integral part of capitalism.
In fact, without a certain amount of debt by consumers, Americas economy would not be as impressive.
It is overwhelming debt based on a lack of self control that has gotten us where we are.
Furthermore, the flip side, predatory lending practices are a part of the debt equation.
Banks over the last few years depleted their main revenue streams in prime mortgages, then began to lend to sub-prime consumers.
Credit card companies began solidifying revenue streams by adding excessive fees and penalties to account holders finding themselves in trouble, rather than attempting to offer debt solutions.
Opening the national checkbook, your withdrawn to the tune of a trillion or so, then continue to print and spend dollars by the billion is just absolutely ludicrous.
Blatant mismanagement.
THe interest far exceeds now what we take in. Its only a matter of time before USSA goes the way of the USSR.
450 billion is about 25% of 2009 projected federal tax income. Federal tax receipts are expected to be around 2 trillion dollars.
Current federal debt is six times our income. Most individuals would declare bankruptcy if their finances were in this shape.
“Wrong job for the tool.”
If the only tool you have is a hammer — everything starts to look like a nail.
These bozos will not be happy until 100% of America’s GDP is going to service the interest on the debt.
Interest on long term debt where you are adding value to life - individual homeownership, interstate highways to facilitate commerce - is one thing. Paying interest on short term debt which subtracts value from life - credit cards, government jobs - is destructive.
Right now most of the debt being created by government is short term. Short term bonds to create bigger government is sucking the life out of America. When the overburdened private sector gets fed up and takes their ball and goes home, those on the government dole, which includes government workers will quickly find out the game is up.
When the $70,000 a year cop has to pay $70,000 in taxes
to pay the $70,000 a year teacher who has to pay $70,000 in taxes
to pay the $70,000 a year prison guard who has to pay $70,000 in taxes
to pay the $70,000 a year firefighter who has to pay $70,000 in taxes
to pay the $70,000 a year community organizer - the game is up.
From the excerpt this sounds a bit like what Hamilton said when he was arguing for the nation to assume debt. He felt that it would give the wealthy and power players a stake in keeping the nation alive if that nation owed them money.
The one good thing about national debt is that we always need a reason no reject any Democrat social agenda schemes. We truly need to not be able to afford things they have in mind.
The general thought goes back further than Keynes.
Hamilton suggested that a national debt was a good thing, and used that position to push for the federal assumption of state debts incurred during the revolution.
His view was that a national debt, funded via notes bought by the citizenry, would give the people a stake in the success of the Union.
SOME amount of debt may be unavoidable in the face of unforeseen circumstances that demand substantial borrowing (e.g., WWII). Borrowing massive amounts of money simply to throw it down a rat-hole (e.g., Obamanomics) is a different thing entirely.
Amen...
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