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Within 10 years, the interest on the national debt will cost $1.1 trillion per year.
The nation is being destroyed by its government and, especially, by its government’s addiction to debt.
Why do we need the debt? To “stimulate” the economy.
Why does the economy need artificial “stimulation”? Because We the People don’t have enough jobs to be sufficiently productive to independently maintain the economy and our standard of living.
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Austin Goolsbee was President Obama’s chief economist. I saw him interviewed on one of last Sunday’s TV-news talk shows. He looked anxious and defensive. But he gamely argued that the previous month’s bad job and manufacturing reports were only one-month aberrations and did not compromise the ongoing “recovery”.
So, I was surprised when it was announced the next day that Mr. Goolsbee had resigned from his White House post. I don’t know if he actually resigned, or was fired. But his departure can’t be viewed as evidence of an economic recovery.
The “rats” are leaving—or being driven from—what increasingly appears to be a sinking ship.
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When the federal government first entered into significant borrowing, the debt was excused under the pretext that “we owe it to ourselves”. I.e., the feds borrowed money from the American people and would have to repay the debt (and interest) to the American people. America would not be significantly hurt by these debts.
The idea that “we owe it to ourselves” is a fairly reasonable argument because it presupposes that the American people could control the magnitude of the federal government’s debt by their willingness or reluctance to lend to the federal government.
So long as the feds borrowed only from Americans, If Americans didn’t consent to lend more money to the feds, the feds would have to operate “hand to mouth” based strictly on its annual revenues. Americans could compel the gov-co to “balance the budget” by simply refusing to lend it more money.
