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To: Willie Green
Right now, the market views US debt as a lucrative source

Lucrative in comparison to what? The interest we pay on this debt is embarrassingly low by historic standards. You can make much more lucrative investments than US debt.

of guaranteed income.

"Guaranteed" is right. They view it as incredibly safe because they believe above all else two things: [1] the US government will keep its promise to pay it back and [2] that over the period of the note inflation will remain in check so that the US goverment does not pay them back with inflated dollars thus wiping out their "lucrative" gains.

Over 18% of federal revenue collected from taxpayers goes directly to service interest payments on the debt, a larger expenditure than what we pay for national defense.

Aahh, you stumbled upon one of the borders of the inherent firewall that will limit government's growth to reasonable limits.

"And I sincerely believe, with you, that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale."

No disagreement here. Large deficits are not good. Large debt in principle is not good and should be avoided. I would vote for a balanced budget amendment, or a two-thirds super-majority requirement for spending more than we take in, or for more than a dozen like measures touted to rein in deficits and debt. But, I think over-dramatizing the current situation is counter-productive.

118 posted on 06/01/2004 6:36:41 PM PDT by Tennessean4Bush (An optimist believes we live in the best of all possible worlds, a pessimist fears this is true.)
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To: Tennessean4Bush
Over 18% of federal revenue collected from taxpayers goes directly to service interest payments on the debt, a larger expenditure than what we pay for national defense.

Aahh, you stumbled upon one of the borders of the inherent firewall that will limit government's growth to reasonable limits.

Boy, its working great too! Please. Show me any evidence that this statement is even approaching the realm of reality.

123 posted on 06/01/2004 6:48:51 PM PDT by Phantom Lord (Distributor of Pain, Your Loss Becomes My Gain)
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To: Tennessean4Bush
you stumbled upon one of the borders of the inherent firewall that will limit government's growth to reasonable limits.

Bankrupting the nation will indeed limit government's growth...
But I'm disinclined to agree that it is a "reasonable" strategy to pursue.

Large debt in principle is not good and should be avoided.

Our Gross National Debt has risen from 32.5% of GDP in 1981 to 62.4% of GDP in 2003.
It is projected to continue rising to almost 72% of GDP by 2009. (Source)
Alan Greenspan cannot continue holding interest rates down.
The bubble will burst when interest rates begin to rise.

128 posted on 06/01/2004 7:16:32 PM PDT by Willie Green (Go Pat Go!!!)
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