How much is $17 trillion? Visualized for reference.

[GregWeld]

I love these kinds of discussions....

What people fail to fundamentally understand is that regardless of who owes whom... you can't spend your way out of it. I don't give a rats azz what came first the chicken or the egg... or the why... or the how... or even when. Debt is debt and when you owe more than you can afford to... you're in deep trouble. Borrowing more isn't going to help.

The medicine tastes bad... which is -- SOMEONE has to quit spending. SOMEONE must end the vicious cycle...

JP's version of a fix is to just spend some more and everything will be fine. That might be true -- TEMPORARILY... But in order to spend more we have to borrow more -- which means our interest rates will rise - which will take a larger bite out of everyones pocket INCLUDING the Governments which will exacerbate the deficit since we've been re-financing the older higher rate debt with new lower rate debt (in business we called that a "roll over"). The current low rates on US Treasuries has actually HELPED our deficit. Once that comes to an end... and it will... then what? Borrow more at higher rates to roll over the low rate and what happens?

Remember that when you see these 1 year and 5 year and 10 year Treasury notes... that means that the capital is DUE on those. So while we might be financing that 5 year note at .67%.... in 5 years when that note is due - what's the rate going to be... which means we'll still owe that amount - we'll roll that at the new rate - which sends the deficit even higher.

It's a toilet that just needs to be flushed.


Basically our government is no better at this game than the idiots that bought houses with 1 year teaser rates... Then they couldn't figure out what to do when the real rate hit.

I get JP's position on increasing employment - with stimulus - which creates tax income etc. Except that we're still borrowing from Peter to pay Paul and we'll end up with a sore Peter...