Perhaps the best liars are people who sort of lie. I mean liars about the fake “national debt crisis” whose garbage is clear enough to seduce average people, but vague enough to evade analysis.
Here’s an example from Time magazine: How much does America’s huge national debt really matter?
Right away we are told that the national debt is huge. In a world where most people tune you out when you try to communicate with them, it can seem that the choice of a single word makes little difference – but this is not true. For example, the U.S. Empire no longer goes to war. Instead, it “intervenes.” The Empire no longer bombs, pillages, and slaughters. Instead, it engages in “kinetic actions.” The Empire operates not out of hate and greed, but from the “responsibility to protect.” Any account or explanation you don’t agree with is a “conspiracy theory.” Anyone you don’t like is a “terrorist.”
Anyway let’s move on.
After briefly surging to the forefront of the national debate, concerns about U.S. debt appear to have gradually dissipated in the body politic.
Yes. Many liars about the U.S. government’s fake “debt crisis” are angry about this. They ask, “How are we going to privatize Medicare and Social Security if the public isn’t panicked about the national debt crisis? Back in 2011 we had the masses terrified of fiscal cliffs and government shut-downs. How did we lose that?”
The essential question: How much does national debt matter? For a country like the U.S. with a good payment history, (relatively) strong economy and control over its own currency, the answer at least for the moment, is “not too much.” To understand why, looking at the country’s total debt, which has nearly doubled following the financial crisis, matters less than how much it costs to finance our debt. That is, the most important number is the minimum payment on the credit card bill, rather the total amount we owe.
This sounds reasonable, as long as you stay in a mental limbo like this person…
That girl could have written this Time Magazine article.
The country’s total debt, which has nearly doubled following the financial crisis, matters less than how much it costs to finance our debt. That is, the most important number is the minimum payment on the credit card bill, rather the total amount we owe.
Oh? But if the U.S. government can create infinite money, then what’s the problem?
While our debt load right now isn’t necessarily worth getting angsty about, thanks in large part to cheap financing, at some point you really can have too much of a bad thing.
The “debt load” is simply the amount of money that various parties have deposited at the Fed by purchasing T-securities (Treasury bills, Treasury notes, Treasury bonds, Treasury Inflation Protected Securities, Savings Bonds, Series EE bonds, Series HH bonds, etc.)
There’s an ongoing controversy over whether a particular high debt among advanced economies—such as a 90%-debt-to-GDP ratio—is broadly correlated with slower growth, or whether such thresholds are effectively arbitrary or too general to be of significance. That debate has become heated at times, particularly because debt is such a partisan issue.
The U.S. government’s debt is only a “partisan issue” among liars, and among ignorant people.
While the U.S. is far from trouble at the moment, it will have to clean up its fiscal house at some point. The Congressional Budget Office projects public debt in 2026 will jump ten points to 86% of GDP, and will hit a record 155% of GDP in three decades. Interest on debt, that minimum credit card payment, are projected to eclipse military spending by 2021, putting the squeeze on other fiscal priorities. If spending continues on its projected course and nothing is changed, debt interest payments will become a larger government expense than even Social Security by about 2060.
Bullshit and repetition. It’s a magic formula…