A blog for those politicos looking for a place to vent!
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The US borrows that money to deficit spend. Search the net for historical data on our federal deficit as a percentage of GDP.The big blips since 1900 are during WWI and WWII. Many economist feel the debt from WWII slowed growth in the 50's and 60's and even into the 70's. We have been deficit spending at the greatest rate since WWII. Don't put all the blame on the Obama as Bush got the ball rolling a year or two before Obama took office.I don't think the Presidents influence the Deficit/GDP ratio as much as we'd like to think. When the economy tanks all of D.C. will spend to beat the band rather than lose office. They do like to take credit for a good economy. We just pay the bills.All the basics have gone up in price. Wheat, oil, metals, etc. are all at historical highs. Inflation must follow.
With the debt as high as it is, it makes a weak dollar. Very good for our exports- People continue to wrongly think that government should be run like a business. It is not a business, it is a service providor. People also have a tendency to forget how expensive war is, and how it has bankrupted many an empire.A 10% national sales tax would pay off the national debt in under 3 years, yet the dollar would be too strong for Americans to export anything.
10% National sales tax, Ouch!
speculators were hung in england in the 17th century...the reason, of course, was their ability to raise prices on "fear" of shortage where no shortage was likely or existed..a form of grand larceny....the u s "economy" is based on speculation.oil speculation fit? how 'bout a commodities monopoly game?prices rise on "fears" over libya or anything else you would like to put in place.perfectly appropriate to a fantasy country where virtually nothing is really real...least of all an "economy".the callers of the war dance don't go to war or suffer consequences of any kind.you and yourn go to war and suffer wounds and death and monetary cost...the caller makes the money.the deficit is unsecured paper...you can find lots of it in bathrooms around the country.fear not...when the collapse we are currently in is done...you will recognize those who caused it...they won't be around.