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View Diary: A former trial attorney's thoughts on the debate (297 comments)

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  •  Should I be worried about the national debt? (0+ / 0-)

    My issue is the fiscal side of things. I have read about a "fiscal cliff".  Will the sides work out a compromise?  Media publicity will force them to.

    My issue -  which isn't getting enough attention -  is the interest and principal on the national debt.

    I have several grand-children.  The one I am worried about is autistic.  The public schools here have a pre-school for special needs children plus a very high ratio of adults to disabled children from kindergarten on.  My grandchild needs those programs.  

    But countries who hit the tipping point with excessive debt lose control over their own affairs.  Take Greece & what happened in Greece this winter (the second bailout terms are absolutely brutal - & require cuts to employment, retirees, and funding.)

    I used to work for one of the Federal Reserve Banks (a very long time ago), so I did some fact checking recently with FRB on-line statistics.  I was horrified to see that American's debt growth is so fast, it is nearly supersonic.  

    I found a homemade video by another retiree who tries to explain the debt situation, and it is well done.

    Google Hal Mason Youtube debt

    •  Comparisions to Greece are foolish (1+ / 0-)
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      1)  Greece can't print money.    This is the fundamental problem with currency union; the currency that they use is essentially controlled by Germany.  

      2)  Greece borrowed a huge amount of money (under the table) so that they could join the EU currency union.    Goldman Sachs fronted the money and now the bill is coming due, in addition to lots of clever bets on the arbitrage.

      The debt is arbitrary.   We could easily raise taxes or print money to pay it off.   Some would argue that borrowing money at zero (or negative) interest rates is a good thing.  If the money we borrow now nets a %1 on the economy, that is known as 'profit.'

      I'm not saying that it is nothing to be concerned about, but it is a policy construct not ZOMG we are going down like Greece.

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