The Government Bubble

[Lumpy 1]

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

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

 

[Joe Steel]

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.

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.

 

[uscitizen]

But all this happened since last February, right?

 

[Skull Pilot]

For Christ's sake children

Government has been on an exponential growth curve for decades wake the fuck up already

 

[Joe Steel]

For Christ's sake children

Government has been on an exponential growth curve for decades wake the fuck up already

...ever since Reagan sold the first bottle of Supply Side Snake Oil.

 

[uscitizen]

Trickle down was the description of what was going to happen to the USA.
We are getting there.

 

[Skull Pilot]

For Christ's sake children

Government has been on an exponential growth curve for decades wake the fuck up already

...ever since Reagan sold the first bottle of Supply Side Snake Oil.

ever since FDR

 

[uscitizen]

Since Washington and the Whiskey tax.

 

[Joe Steel]

For Christ's sake children

Government has been on an exponential growth curve for decades wake the fuck up already

...ever since Reagan sold the first bottle of Supply Side Snake Oil.

ever since FDR

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

 

[ba1614]

For Christ's sake children

Government has been on an exponential growth curve for decades wake the fuck up already

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.

 

[Skull Pilot]

...ever since Reagan sold the first bottle of Supply Side Snake Oil.

ever since FDR

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

FDR grew the size of government to unprecedented levels at the time

unfortunately his huge government expansion seems like peanuts compared to recent increases in the size scope power intrusiveness and cost of government

 

[logical4u]

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.

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.

No, that would be "our" gov't posing as conservatives that created this disaster. Conservatives would not have gone for all the "pork" projects and overspending. The people that voted for the "posers" are the ones at the tea parties, encouraging our gov to limit spending and tax increases. After all, every nation in history that continued to spend what it didn't have, stopped being a nation.

 

[Joe Steel]

ever since FDR

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

FDR grew the size of government to unprecedented levels at the time

unfortunately his huge government expansion seems like peanuts compared to recent increases in the size scope power intrusiveness and cost of government

No matter what the poles say, Americans love big government. FDR knew it so he gave them what they want and what the Founders contemplated. Succeeding administrations never measured-up to him but some were much worse than others.

 

[Joe Steel]

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.

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.

No, that would be "our" gov't posing as conservatives that created this disaster. Conservatives would not have gone for all the "pork" projects and overspending. The people that voted for the "posers" are the ones at the tea parties, encouraging our gov to limit spending and tax increases. After all, every nation in history that continued to spend what it didn't have, stopped being a nation.

"Spending what we don't have" is fundamental to our understanding of govenment. See Art. 1, Sec. 8 of the US Constitution.

 

[Lumpy 1]

The Bubble has to do with cheap money now, loans coming due in the not to distant future, the repayment of those loans at higher interest rates and where it puts the country. Playing the blame game or incurring more debt hardly solves the problem.

 

[Skull Pilot]

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

FDR grew the size of government to unprecedented levels at the time

unfortunately his huge government expansion seems like peanuts compared to recent increases in the size scope power intrusiveness and cost of government

No matter what the poles say, Americans love big government. FDR knew it so he gave them what they want and what the Founders contemplated. Succeeding administrations never measured-up to him but some were much worse than others.

Really?

Americans want big government?

Americans want the government to confiscate even more of their paychecks so as to receive shoddy services and government mandates and less control over their own futures?

I don't know what America you live in bub.

 

[Lumpy 1]

FDR grew the size of government to unprecedented levels at the time

unfortunately his huge government expansion seems like peanuts compared to recent increases in the size scope power intrusiveness and cost of government

No matter what the poles say, Americans love big government. FDR knew it so he gave them what they want and what the Founders contemplated. Succeeding administrations never measured-up to him but some were much worse than others.

Really?

Americans want big government?

Americans want the government to confiscate even more of their paychecks so as to receive shoddy services and government mandates and less control over their own futures?

I don't know what America you live in bub.

What gets me is that government screws up in the protection of the citizens and rather than kicking some government employee butt, the answer is always create more study groups and bureaucracies that fail again. Government should be leaner, meaner, clearly defined and responsible. There's just to many on the take.