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"Perhaps most obviously, the economic “experts” on whom much of Congress relies have been repeatedly, utterly wrong about the short-run effects of budget deficits. People who get their economic analysis from the likes of the Heritage Foundation have been waiting ever since President Obama took office for budget deficits to send interest rates soaring. Any day now!"
"And while they’ve been waiting, those rates have dropped to historical lows. You might think that this would make politicians question their choice of experts — that is, you might think that if you didn’t know anything about our postmodern, fact-free politics."
Interest rates are being determined by the FEDERAL RESERVE...That is why things are slowly goiung downhill...Bernanke is manipulating the rates so obama doesn't bear the brunt of a total collapse of the economy. Imagine what high inerest rates would do to the economy that we currently have.
I agree that most people don't understand debt. Investor's demand for treasuries right now is so high that the federal government's ability to borrow is virtually unlimited. Yet people are constantly whining about our deficit spending. The government should be borrowing more not less.
I understand debt and keep from going into it. Oh, it can be challenging and one makes sacrifices and makes choices to keep ahead of the game.
This country is 7 years behind on paying their debts.. our government takes in 2 trillion dollars in taxes annually and spends 3 1/2 trillion a year and owes @ 15 trillion and with Obama asking for 1.2 trillion more in raising the debt ceiling we are never going to get our of debt. Ever!!!!!..
I can see the third horsemen of the Apocalypse of economic collapse in the distance galloping toward us.
It is weird. A few years ago it was all "deficits don't matter". Now the apocalpyse is pending!
I totally get that there are competing economic theories. Economics is all theory after all, no one really knows what is "true".
But Obama has been pretty much following long established economic paradigms for how to deal with the issues. The rating folk pretty much wanted him to follow conventional wisdom (spend out of the current slump, cut down on long term debt) but folks are acting like this is some new, borderline treasonous, scandalous SABOTAGE OF OUR ECONOMY!!!!!! Wha? LOL
Don't get me wrong, I'm not saying it's the right or wrong approach - I'm open to all points of view - but sometimes the tone of the conversation just seems to drive straight into crazytown and then I promptly tune folks out.
ETA: I think me ad the person above posted at about the same time. Please don't take that personally since I hadn't even seen your post when I was typing it. Sorry about that.
There are some simple premises from my view being forgotten. Income is definitely more important than expenses. However the belief that debt has supreme value is a very sick view imo.
Debt means indebted, which is simply slavery. It is the very idea that debt is king that has created so much of it that generations to come will never be free of it.
I agree that most people don't understand debt. Investor's demand for treasuries right now is so high that the federal government's ability to borrow is virtually unlimited. Yet people are constantly whining about our deficit spending. The government should be borrowing more not less.
Well since the FED can print unlimited "dollars" at the moment I would say it is pretty unlimited. However, let's get real basic.
The FED has a huge amt of wealth and prob more power than anybody yet they are exempt from any debt are they not? Maybe they know something all these debt lovers don't?
Good post. The misunderstanding of American national debt allows moronic republican politicians to shout about government spending and how this is sending America down the plug hole. Meanwhile they almost caused s complete economic meltdown over the debt ceiling, want to slash spending, reduce taxes for the wealthy and destroy unions. It's absolutely disgusting.
I agree that most people don't understand debt. Investor's demand for treasuries right now is so high that the federal government's ability to borrow is virtually unlimited. Yet people are constantly whining about our deficit spending. The government should be borrowing more not less.
That's because they're waiting on 5 - 10 years to pass when our economy finally recovers and all of the excess money that is out there has to be sucked back up and they do that with higher interest rates. If the don't raise the interest rates at the right time you'll see massive inflation to the tune of 30 - 40%.
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