http://campaignstops.blogs.nytimes.com/...
It's as if they don't read what they write... Relevant point: between '46 and '74, the debt shrunk to near-irrelevance as a percentage of GDP in spite of consistent deficit spending. The reason, obviously, is GDP growth. The key to GDP growth is, contrary to Republican contention, not capital reserves surplus - which is useless in the current context - but rather the marginal increase in disposable income among the greatest possible number. In other words, addressing income inequality is how to address the deficit. Not just the best way to do so, but, as the current EU experience makes clear, the only way: austerity DOES NOT WORK.
Sorry I raised my voice.
Also, re: our debt to China: can we please shut up about that? China does not buy US bonds as a favor to us. They buy them to keep down the value of the renminbi. If they sold significant amounts of reserves, or even if they stopped increasing them significantly, the resulting shift in the economic landscape caused by the rise in Chinese currency values would do much to solve our problems. In this relationship, we hold the whip hand - we consume their goods, we have the ability to switch suppliers. China cannot replace us as consumers of their economic output.