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(13,452 posts)
52. National debt is not a problem, interest rates are low. The trap is bigger.
Wed Jun 6, 2012, 06:22 PM
Jun 2012

1. Interest rates for borrowing are low and going lower. It's not nice having a huge national debt, but it's not our biggest problem.

We have bunches of people not working, we're better off working them while raising that debt rather than austerity and watching more people not finding work.

2. The big problem is outstanding derivatives neatly tucked in retirement accounts waiting to be cashed. By then, there will be no cash. Partly because of too many not working.

Already, cities and companies cannot pay their retirees.

The Republicans made hay out of derivatives over and over.

First, it brought up a floundering Bush economy in 2004 by borrowing against our future. (Welcome to the future.)

Second, it made their buddies in banks a lot of bucks, including our direct tax dollars.

Third, it comes due later, in the future, in a future Obama administration. Oh, yeah, we're here now. The retirement accounts across the country are going or going to go under. ***Remember what fun the fund managers had going to Hawaii to learn how to invest retirement accounts?***

Fourth, with people not working, government on the hook for retirements, Social Security will be argued as not viable. Too bad, so sad. (With a hands up Yippee from Republicans.)

Our U.S. 15-trillion dollar economy runs on about 2-3 trillion in cash. So, how much derivative cash is out there? I hear 600-1200 trillion dollars.

That's a lot of debt.

The national debt is a tiny 16 trillion in comparison.

Just let the Bush tax cuts expire...don't make any exceptions...everyone must sacrifice! rfranklin Jun 2012 #1
'Fell' earthside Jun 2012 #2
Ron Reagan just made the point on MSNBC... kentuck Jun 2012 #4
I think our expensive wars have really hurt us financially. Mayflower1 Jun 2012 #3
That's a big part of the debt. kentuck Jun 2012 #5
Starve the Beast Sekhmets Daughter Jun 2012 #21
True. kentuck Jun 2012 #23
Perhaps the best way to save the nation Sekhmets Daughter Jun 2012 #45
The Democratic party Harmony Blue Jun 2012 #6
That is the key. kentuck Jun 2012 #7
Well they need not make the same mistake twice! Harmony Blue Jun 2012 #9
I would agree. kentuck Jun 2012 #17
The last Democrat to show political courage Sekhmets Daughter Jun 2012 #22
Along with a massive cut in defense Dokkie Jun 2012 #36
Everyone would NOT have to tighten their belts. Pab Sungenis Jun 2012 #8
Perhaps you are right? kentuck Jun 2012 #10
Look at 1993 through 2001. Pab Sungenis Jun 2012 #12
But not under our present tax system... kentuck Jun 2012 #14
Again, that's my point. Pab Sungenis Jun 2012 #15
Sorry for the misunderstanding... kentuck Jun 2012 #16
No harm done. Pab Sungenis Jun 2012 #56
Good comment. nm rhett o rick Jun 2012 #33
Sorry but Sekhmets Daughter Jun 2012 #24
Do you really have hope that our elected "Democrats" will do shit to help us? MoonRiver Jun 2012 #11
Watch out, language like that will bring down the wrath of the DU Neighborhood Watch. rhett o rick Jun 2012 #34
And I have my running shoes on! MoonRiver Jun 2012 #35
Just be careful standing your ground. nm rhett o rick Jun 2012 #40
No problem, I run! MoonRiver Jun 2012 #46
Wise. nm rhett o rick Jun 2012 #49
FWIW, folks like Krugman have been saying this for years Blue_Tires Jun 2012 #13
I often don't agree with Krugman Harmony Blue Jun 2012 #25
The way out is to let all the tax increases and spending cuts take effect at the end of the year FarCenter Jun 2012 #18
That would be a good start... kentuck Jun 2012 #19
YOU ARE sooooooo right! jpbollma Jun 2012 #20
Let us get to 39% and we can slowly start talking about rolling back the Reagan tax-cuts. Chan790 Jun 2012 #28
In effect... kentuck Jun 2012 #30
Even Romney Sekhmets Daughter Jun 2012 #26
Yes, the austerity of spending cuts must end.. kentuck Jun 2012 #27
The spending cuts in 2013 would be only $110 billion FarCenter Jun 2012 #29
I think there is zero chance Sekhmets Daughter Jun 2012 #31
One thing I would not want to see... kentuck Jun 2012 #32
Agreed. But Sekhmets Daughter Jun 2012 #43
You actually support the fiscal cliff? girl gone mad Jun 2012 #38
If the federal government didn't need to borrow in order to spend, the debt limit wouldn't matter FarCenter Jun 2012 #41
True, however Sekhmets Daughter Jun 2012 #44
Democrats need to just shut up about deficits. girl gone mad Jun 2012 #37
I disagree... kentuck Jun 2012 #42
I can hardly imagine anything more powerful Mairead Jun 2012 #39
In my opinion, respectfully, that's a load of crap. jtuck004 Jun 2012 #47
With equal respect... kentuck Jun 2012 #48
BHO does not equal FDR - lol. No kidding. To your other point, maybe the thugs are successful jtuck004 Jun 2012 #50
I'm not sure you got the main gist of my post? kentuck Jun 2012 #51
Change the frame, ala Lakoff. Make it about growth and investment. jtuck004 Jun 2012 #54
National debt is not a problem, interest rates are low. The trap is bigger. Festivito Jun 2012 #52
It is a "political" problem for the Democrats... kentuck Jun 2012 #53
I still think the derivative problem will be the bigger political problem. But, ... Festivito Jun 2012 #55
Absolutely. "Debt" is an illusion considering the banks' theft of TRILLIONS of our dollars, Fire Walk With Me Jun 2012 #57
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