I have to agree with you. At one time our national debt was modest. At one
time we owned all of our debt, but now with much of the debt held by foreign
countries, the biggest danger to our economy is if interest rates increase
even a modest amount, the cost will be enormous.
While many people believe that the US is immune to these problems, the
national debt could be our Damocles Sword hanging over us. The way I see it,
the 17 trillion we owe, represents deferred taxes. The only way to pay back
that debt is by taxation or the liquidation of assets. Me thinks another
generation is going to get stiffed and pay the piper 'cause most of us will
die before we pay it! :-)
Another aspect is once currency gets to the trillions, then the word
exponential comes to mind as a trillion is a very large number. One trillion
seconds is 31688 years, so even paying it back at the rate 100 dollars a
second would take about 300 years. A million dollars in one thousand dollar
bills is 4 inches high, a billion is 358 ft high, but a trillion is 67 miles
high. So that would make our debt in terms of 1000 dollar bills only 1139
miles high! Mind boggling!
Yes life in the US is good, but a good part of it is an illusion, as we are
now living not only on our present income, but also the next generations
income as it is unlikely that the baby boomers will pay it. Could the saying
"Pass the buck" ever be more appropriate?
Just like SS, when you were working, you paid the previous generation's SS
and now the present workers pay our SS, but as a bonus, the next generation
will not only pay their SS recipients, they get to pay for two wars, meds
for seniors, a stimulus and what ever else 17 trillion+ bought. The
Ultimate Ponzi scheme.
If anyone else has a different take on this, let 'er rip.
--
Frank Howell