The Government Bubble

Discussion in 'Politics' started by Lumpy 1, Dec 28, 2009.

  1. Lumpy 1
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    Lumpy 1 Diamond Member Supporting Member

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    I just thought this was kind of interesting reading for the rosy scenario crowd. Welcome aboard the Titanic folks...:eusa_eh:

    The federal government's average debt maturity remains less than 4.5 years, which means net interest costs will soar over the next several years as the government rolls over its debt at higher interest rates.

    Think about it. The federal deficit was $1.4 trillion in the fiscal year that ended in September, or 10% of GDP, the largest peacetime deficit on record. But net interest--the cost of servicing the national debt--was only 1.3% of GDP, the lowest in about 40 years. For comparison, net interest was absorbing about 3% of GDP in the 1980s and 1990s.

    In other words, loose money has created a temporary mirage in which a massive increase in government spending appears to be an easy burden to carry. In particular, the mirage of low rates colors the public's view of legislative efforts to fully nationalize the U.S. health care system, making it seem more affordable than it is in reality.

    The Government Bubble - Forbes.com
     
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  2. Joe Steel
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    Joe Steel Class Warrior

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    Conservative bungling of economic policy has created a disaster. Digging-out of the rubble will be long, difficult and costly. That's the price we pay for letting conservatives have the reins of government.
     
  3. uscitizen
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    uscitizen Senior Member

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    But all this happened since last February, right?
     
  4. Skull Pilot
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    Skull Pilot Platinum Member

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    For Christ's sake children

    Government has been on an exponential growth curve for decades wake the fuck up already
     
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  5. Joe Steel
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    Joe Steel Class Warrior

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    ...ever since Reagan sold the first bottle of Supply Side Snake Oil.
     
  6. uscitizen
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    uscitizen Senior Member

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    Trickle down was the description of what was going to happen to the USA.
    We are getting there.
     
  7. Skull Pilot
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    Skull Pilot Platinum Member

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    ever since FDR
     
  8. uscitizen
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    uscitizen Senior Member

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    Since Washington and the Whiskey tax.
     
  9. Joe Steel
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    Joe Steel Class Warrior

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    FDR left a lot of debt from the war but no one argued with that. Are you?
     
  10. ba1614
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    ba1614 Silver Member

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    Exactly, it's fuckin' laughable to watch partisans blame each other while refusing to see that it's government in general that has lost it's way, not a particular party.
     

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