Posted on 01/01/2013 4:43:34 PM PST by gunsequalfreedom
If debt is so good I wonder how we are in such bad shape with a debt as big ours.
According to the author it is because our debt is not big enough.
The total national debt was only higher than 100% of annual GDP once before in our history, and that was during WWII (when we were financing massive supply dumps into Russia and England so that their children could die at the ends of Nazi machine guns instead of our children... a pretty good purchase, considering... and we paid the debt back down to 40% within 6 years).
Pelosi and Reid took over Congress with the ratio at 43% in 2007. It's now at 105%, in just 5 years. The IMF calls 125% as "unsustainable". Only 10 nations have a higher ratio right now, and most of them are in sever financial trouble (and most of the rest are tiny Caribbean island-nations). We are not currently paying 40 million Europeans to die in our place, and we are not about to enter an era where we have the the vast majority of the world's modern manufacturing plants that don't have bomb damage.
The "tool" of deficit spending may be occasionally useful... but as in all things (even milk consumption), too much can be fatal. We are nearing the practical limits, but the Left wants to race Forward anyway. Idiots.
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