[reformedliberal]

So did FDR. His debt was 130% of then-GDP to pay for the war effort AND the New Deal.

The debt is funded by 30-year bonds. The bonds from 1942 and 1968 have been retired. Our present debt ratio is 3.1% of GDP.


http://www.freerepublic.com/focus/f-news/1171083/posts
U.S. posts higher-than-expected June budget surplus
Reuters ^ | Tue Jul 13, 2004 | Laura MacInnis


http://www.freerepublic.com/focus/f-news/1129124/posts
Federal Deficit Likely to Narrow By $100 Billion
Washington Post ^ | May 4, 2004 | Jonathan Weisman

Note both articles are from mainstream sources.

[meenie]

Thirty year bonds should have been paid and retired up until thirty years before 2004 or those issued up until 1974. 3.1% of a seven trillion GDP would be 217 billion dollars. That might pay the interest on the debt for a year. The 130% of GDP in the FDR adminstration is approximately what our debt is now without any future obligations considered. Medicare and SS payments are eating our lunch compared to the FDR era.

The June item in Reuters was 100 billion less but still 400 billion plus for the forecast budget year. An item that is never mentioned among elite people is the fact that our trade deficit is financed through the Federal Reserve just as our government funding is done. This dilutes the value of our money just as our government spending does. There is no free lunch in government spending and/or trade spending. If you don't pay now, you pay later. It is as simple as that.