Re: National Debt

On May 10, 11:34 am, Lantern <lanter...@xxxxxxxxxxxx> wrote:
I know it must be trying for you but please be patient. For this
particular go around maybe it would help to address the question
directly. The question is: "If the U.S. can carry the debt, what's the
problem with some amount of national debt?" I know too much debt is
bad. But how about a reasonable amount of debt. Reasonable being that
which we can carry.

The key is that the national debt must be kept under control to
avoid consequences. I posted an article regarding this issue called
"The collateral damage of national debt" a few months ago. Here it is:
_____________

Some people believe that the national debt is not necessarily a bad
thing to a nation -- the debt can be rolled over forever.

But the real damage is often not the debt itself, but the side
effect (the collateral damage). In 9/18/2006's Newsweek, Allan Sloan
wrote an article titled "D.C.'s Deficit Math Doesn't Add Up." He
stated that the official US deficit for 2006 is $260 billion, but the
actual
debt is $558 billion. Where is the $298 billion coming from? Uncle Sam
"borrowed" $177 billion from Social Security, and $121 billion from
"other government accounts" such as federal-employee pension funds.

In other words, consistent budget deficit year in and year out
changes the government's behavior and forces them to do things in
ordinary sense will be called "stealing." Uncle Sam borrows money from
funds such as social security without any plan to pay it back. Then
they claim that the social security will go bankrupt in 30 years. How
convenient!

If the government did not get into such heavy debt, it wouldn't
have to do things this way. There is no money to repair the
infrastructures, no money for the retirement, in the mean time, they
claim that the debt can be rolled over forever. One thing I know for
sure, without these
debts, they won't have to steal from the people's retirement funds.

National debt does no harm to a nation? Think again.

.

Relevant Pages

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  • Re: OT: Miguel you might like this
    ... set the debt limit of the US Govt ... open market transactions and setting the short term fed funds rate. ... you might check out the video "Money as Debt"... ... a bank, and then try to get some bailout cash in order to convert them ...
    (rec.music.classical.guitar)
  • Re: OT: Miguel you might like this
    ... set the debt limit of the US Govt ... open market transactions and setting the short term fed funds rate. ... you might check out the video "Money as Debt"... ... a bank, and then try to get some bailout cash in order to convert them ...
    (rec.music.classical.guitar)
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