US Federal Debt Tops $13,000,000,000,000.00

[Louis VI the Fat]

Debts have gone through the roof in all Western countries since 2008. They are therefore not the result of Obama. Nor of Labour in the UK, nor of the (rightwing) Christian-Democrats in Germany or Gaullists in France.

National allegations of irresponsible overspending by any national government is electoral rethoric. It is relevant only insofar as one disagrees with the bailouts and stimulus packages in general, as an international response. Any allegations of irresponsible overspending as a hallmark of any particular administration or political wing is pointless.



Me I blame Reagan, Thatcher, Friedman and Hayek for all of this.

[jabarto]

Me I blame Reagan, Thatcher, Friedman and Hayek for all of this.

I think you can blame pretty much anything bad that's happened in the last 30 years on one or more of those people.

[tibilicus]

At least you don't our massive deficit.

Besides, the US will always be alright, here's how it works. If the US goes into recession,the whole world goes into recession. Hence the Japanese and Chinese keep on buying up your government debt. Although of course they will be the real winners when the world economy switches east. You should feel sorry for us, if the UK goes back into recession it doesn't really affect the world so no one buys our debt.

You shouldn't be to worried about the debt, you should be worried about how you can pay it back. If the likelihood is you can pay it back, then it isn't such a big problem. Look at Japan's debt as a % of their GDP (100 and something) and yet they're not panicking, why? because they know that their deficit isn't that big. Take a worse of country, the UK for example, and here the deficit is teetering near the abyss.

Edit: LOL. Just looked at a list of countries in terms of current account balance. Turns out the USA is bottom so scratch that, it's probably ok to be a little worried. Still, you've still got your buddies in the East to buy you out.

[Crazed Rabbit]

Me I blame Reagan, Thatcher, Friedman and Hayek for all of this.

Wow.

I'll assume your joking, since it is Keynes and his ilk who recommend heavy spending and his ignorant followers who spend even more.

As for not feeling any of the spending - that's not surprising. Government spending is fundamentally less efficient and widespread than private spending; it is directed by a handful of politicians to their friends, allies and pet projects, not at what the public actually wants.

CR

[jabarto]

Government spending is fundamentally less efficient and widespread than private spending; it is directed by a handful of politicians to their friends, allies and pet projects, not at what the public actually wants.

If cognitive dissonance could be harnessed as a fuel source you could probably end the energy crisis with this sentence alone.

[Ironside]

The most obvious question is how much of that is because of increased goverment spending. As pointed out, there's a certain economic crisis that have eaten a considerble part of the budget in every country.

Had Obama balanced the budget to Bush levels already, you wouldn't need to declare him god-emperor because he would already be one (that would require either incredible political skill and/or dictorship, since both a large tax hike or massive cuts is politically impossible).

Now if he doesn't have this under control and massivly decreasing by 2012 he deserves scorn on failing on economic responsibillities.

[woad&fangs]

Wow.

I'll assume your joking, since it is Keynes and his ilk who recommend heavy spending and his ignorant followers who spend even more.

CR

Keynes recommended deficit spending during recessions and a return to fiscal responsibility during the ensuing boom. Reagan(a new deal democrat) followed the first half of the theory by cutting taxes and pouring money into beating the Commies but let Bush senior take the flak for having to inevitably raise taxes and cut spending.

[Subotan]

Me I blame Reagan, Thatcher, Friedman and Hayek for all of this.

Mainly Reagan, as Thatcher was quite insistent on a balanced budget.

Wow.

I'll assume your joking, since it is Keynes and his ilk who recommend heavy spending and his ignorant followers who spend even more.

I assume by "ilk" you mean the majority of economists, worldwide.