In response to:

Uh, Obama? We Have a Problem: Interest Expense to Hit $1 Trillion in 4 Years

FletchforFreedom Wrote: Feb 06, 2013 12:52 AM
Overall, John, a good article. I only have one problem with it, specifiically: "No doubt higher government spending could give the economy a temporary boost, as it did in the third quarter of 2012..." Don't feed the low information voters and conflate GDP with "the economy". Government spending can pump up GDP so that Obama and a compliant media can say "pay no attention to the man behind the curtain, we're heading in the right direction and things are getting better". In reality, that spending comes at the EXPENSE of the economy (the non-governmental components of GDP) to the ultimate detriment of everyone.
Kurt114 Wrote: Feb 06, 2013 8:13 AM
I think that it may come down to confusing liquidity with solvency. Money printing increases the first, without addressing the second. Money printing, and the zero interest rate policy, enable even more deficit spending, therefore encouraging even more increases in liquidity, and so the spiral goes. Also, as the article implies, the Fed has not painted itself into a corner with regards to manipulated low interest rates. If they target inflation with higher interest they sink the federal budget. I see no policies encouraging increased industrial productivity to support the value of these new dollars.
John Ransom, Finance Editor Wrote: Feb 06, 2013 1:17 AM
Fletch, the problem is that I have to make things simple. I only have so many words.
Drifter33 Wrote: Feb 06, 2013 5:36 AM
You're right, John-- This is a very complicated subject.

What ISN'T very complicated is that one goes into debt when one spends far more than one takes in.

That is very simple for even the "low information voters", and yet, they don't understand it.

Might have something to do with "FREE" Obama Phones...
Bernard83 Wrote: Feb 06, 2013 8:23 AM
Perhaps, as I have observed when talking with most people, the 'folks' don't really understand where the money comes from. Most think it comes from the government and that the government can just print more with no limit. So there is no debt problem as far as they are concerned. They believe it's just a manufactured crisis designed to keep them from getting ahead.

I hate to interrupt Obama’s “We Don’t Have a Spending Problem” World Tour. But reality intervened on Tuesday as the Congressional Budget Office released a report that says that the budget deficit will grow through 2023 and “will eventually require the government to raise taxes, reduce benefits and services, or undertake some combination of those two actions,” reports CBSNews- and all of that just to cover interest payments.

“In its annual Budget and Economic Outlook,” writes CBSNews, “the CBO said debt held by the public will be bigger by 2023 than in any year since...

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