Look at it well. The Congress and the Administration plan on borrowing 100% of Gross Domestic Product (GDP) - that's the value of all the goods and services the private sector creates - and doing so for the foreseeable future.
This, apparently, is the Team Hopenchange definition of fiscal responsibility.
Where is this cash coming from? Well, Team Hopenchange is bumming lots of it from the Chinese, but also tidy sums from the Saudi's, Kuwaiti's, the Russians, and some very fair-weather Europeans.
So ask yourself this, dear readers - how long can we keep this up and - more important - what are we gonna do when our "friends" want their money back?
1 comment:
We'll print more of it. Currently we have relatively high unemployment and very low inflation. I'm betting that unemployment may get artificially lowered by make work projects, but inflation will almost certainly be higher, probably much higher in a few years.
The good news as far as the national debt is that it is payable in dollars. The bad news is that inflationary debt repayment will kill our national credit rating as well as cripple our economy.
I don't think our lords and masters care too much about that far in the future.
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