every dumb dem in the last month has claimed we dont have a debt problem
including obama...
Originally Posted by nevergaveitathought
Uh, your handle pretty much says it all (and matches the ignorance and arrogance of your statement), not to mention when you start off a comment by insulting anyone with a different opinion along with misspelling and poor/no punctuation. Plus you offer no proof they are dumb or that we do have a debt problem.
In the last week John Boehner and Paul Ryan just admitted that we don't have a short term debt problem in the last week -
http://www.theblaze.com/stories/2013...ee-with-today/ The long and short of it is they have been lying for years in service of "killing the beast" whether that is good or bad for the country and middle class or not. Ideology over common sense and evidence.
What do you think, households or businesses who owe 75% of their annual income (GDP) have a debt problem? The sovereign government is not a household or a business and the economic and accounting mechanics of how it operates are nothing similar so that analogy is just plain wrong.
Furthermore, almost no one has actually made a case with numbers and well accepted macro-economic principles that there is either a short or a long term debt problem because if they DO understand both macro-economics and the mechanics of a fiat monetary system, they cannot make the case. What it boils down to is basically, "we have a lot of debt and if this were a household or small business that would be bad" which ignores the structural differences between a sovereign currency issuer and a currency user not to mention the core reasons that there are two different economic disciplines called Macro Economics and Micro Economics with core mechanical and accounting differences between how they operate. I'm certainly not saying that we have no fiscal problems at all, but I will say that our fiscal problems are not what is mostly discussed in the media or by the right wing. Our fiscal problems can and will be solved when we solve our employment problems and not before (in fact they are already beginning to be resolved despite the best efforts of the Republicans by the resurgence of the housing market as Warren Buffet predicted a couple years ago).
What you obviously don't understand (and the Fed has made perfectly clear in its various papers over years under Greenspan as well as Bernanke) is that we don't really borrow to finance government. We create (not even really print anymore) money which allows us to set interest rates and fund government without borrowing. Since we print it and two thirds of the debt is in dollars and to ourselves it could be paid off instantly if desirable. Thus no debt problem. Interest rates are hovering around 1% right now so until they rise significantly, no short term debt problem. Also, the U.S. government cannot go "bankrupt" and we don't need credit rating agencies. Bankruptcy is a legal proceeding that does not apply to sovereigns. We aren't broke either. Do you call a billionaire who has no income and is losing $1 Million a year broke? Of course not. Think about it and maybe the lightbulb will come on someday.