Any questions?
Posted by aogTuesday, 16 February 2010 at 17:07 TrackBack Ping URL

(via Power and ControlHillBuzz)

Comments — Formatting by Textile
erp Tuesday, 16 February 2010 at 19:24

Why are you a racist?

AVeryRoughRoadAhead Tuesday, 16 February 2010 at 20:29

I nominate erp for “Best Comment of the Month”!

Annoying Old Guy Wednesday, 17 February 2010 at 07:15

erp;

Because I went to a Tea Party protest.

erp Wednesday, 17 February 2010 at 08:36

Okay then. Your credentials are in order.

David Cohen Wednesday, 17 February 2010 at 08:38

Actually, the chart’s wrong. It might show the national debt, but it’s certainly not the deficit. Even Obama’s 2010 deficit (at $1.5 trillion, almost a trillion dollars higher than Bush’s largest deficit) is only about 10% of GDP. The national debt, at $12.4 trillion, is about 82% of GDP. But all that really matters is the debt held by the public ($7.8 trillion) which is about 50% of GDP.

Ali Choudhury Monday, 22 February 2010 at 16:10

Why does only the debt held by the public matter?

David Cohen Monday, 22 February 2010 at 21:16

In terms of the effect of debt, debt owned by the government itself can’t really have an effect.

AVeryRoughRoadAhead Tuesday, 23 February 2010 at 13:26

Except that the debt owned by the gov’t represents promises made to the public. While those are the easiest debts on which to welch, (and so we will), both carrying the debt and repudiating it do have costs, financial, political and social.

Bret Tuesday, 23 February 2010 at 17:08

Except that the debt owned by the gov’t represents promises made to the public.

Not all of it. For example, somewhat less than $1 trillion is held by the Fed from their open-market operations and represents promises to absolutely nobody.

The costs of welching on the “trust funds” are probably not much different than welching on any entitlements (which are something like $50 trillion at the moment, depending on how you calculate them).

I think the main point is that there is no net interest payment on said money.

Post a comment