Super Debt

The US debt clock hit $16 trillion today, and it is increasing rapidly. I thought that Bush was the worst when it came to increasing the debt, but Obama has passed him like he was standing still. Bush had a total of about $4.9 trillion in total debts added during his presidency. Well, Obama began his presidency with the national debt at $10.6 trillion, which means that he increased the debt by $5.4 trillion during his reign. Obama is increasing the debt at over twice the rate as Bush did (Bush was in office for twice as long), and the fours years of Obama represent a 60% increase in the total debt. Keep in mind that this doesn’t include the $100+ trillion in unfunded liabilities.

Of course, we cannot forget to thank all of our lovable congress-critters, they’re the ones that actually write and pass the spending bills in the first place. And then there are those generations of entitlement-loving spendthrifts that are too stupid to realize that they’re raping their kids economically without lube. They thought that they were getting it all for free. Nope!

All of this is to be expected no matter whose name is listed as “president” or who is in Congress. Since every dollar is based upon both principal debt and interest, the only way that the old debts can be paid is if new debts are made (there is more debt than actual money). So, it is a self-perpetuating system, where the debt increase in an exponential fashion. The other problem has to do with the methods used to solve such problems as recessions (undoubtedly, the great recession will be used as an excuse for the increased debt). While it is certainly true that stimulus can indeed stimulate economic activity, that does nothing to solve the calculation problems associated with an injection of money and/or credit. Also, it isn’t just activity we want, we want activity that is a true reflection of the market, not activity that is artificially generated by money injections.

Eventually this will all come to a head, if not for the inability to pay our debts, then certainly from the erosion of our quality of life. After all, the only solution to economic problems that ever comes out of Washington involves inflating the money supply, which not only creates havoc for allocating resources, but also increases the debt further.

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Explore posts in the same categories: Credit, Economics

One Comment on “Super Debt”

  1. sharon Says:

    ouch!!!


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