[Willie Green]

Comparing the deficit to GDP is an irrelevant and misleading statistic. It ignores other forms of debt that must be serviced by our nation's domestic economic activity. This includes not only our National debt, but also debt accrued by state and local governments as well as private debt incurred by businesses and individuals.

It is more appropriate to view federal deficit spending in the same manner as any other institution, organization or individual that is borrowing money to finance expenditures that exceed current income. In addition to revenue and expenses, one must consider the amount of debt already incurred and the proportion of revenue that must be allocated to service the interest on that debt.

For FY 2002, interest paid on the National Debt was $332 billion, or roughly 18% of federal revenue for that year. For the first 9 months of FY 2003, the Treasury has already spent over $277 billion in interest expense. (source)

[RLK]

There is no way of paying off this debt and interest except through encouraging inflation and paying it off with funny money.

[Norse]

Trying to win an election by focusing on reducing government debt is a sure way to lose that election.

Focusing on reducing debt rather than growing the economy is like beating a dead horse.

The debt is nothing to be worried about. As for the states - these current budget situations will force reductions in waste. If one focuses exclusively on the budget, it is easier for tax increases to be slipped into the agenda.

[xrp]

Too bad budget busting deficits never seem to result in record BUDGET CUTTING.

[Baby Bear]

Should we be worried about the fact that foreigners own a good chuck of that debt?