How to Tell When the Debt Crisis Gets Serious

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Excellent opinion. The U.S. does have a unique advantage in its ability to continue to borrow. If the government does not mend it ways, there will come a time in the not so distant future when other countries will be unwilling to finance our debt at the current small rate of return ... and we will looking to pay significantly more in interest in order to attract capital.
For all of the outcry about the deficit, precious little is being done. And it does not come from cuts which amount to little, like defunding NPR and the arts. It comes from the big ones, Social Security, Medicare, Medicaid & Defense ... clearly none will be radically restructured, but clear thinking and modifications could lead to very significant savings in the long term.

Tim B of WA 10:37PM April 04, 2011

Who Really Balanced the Budget... it was the GOP, a very strong economy, and reduced military spending!
http://www.cato.org/pub_display.php?pub_id=5656
Federal Deficits (Billions $)
Clinton Baseline* Actual
1994 $203 $203
1995 175 164
1996 205 107
1997 210 22
1998 210 +60
* Congressional Budget Office forecast, April 1995.

Rob of MO 11:05PM March 31, 2011

Democracy fails when the people realize that they can vote themselves a raise.

Josh of AZ 7:20PM March 31, 2011

Funny, not so very long ago our national debt was actually going down. Like him or not, one of the things that Clinton did was to compel both parties to discover that a healthy economy required adequate taxes as well as effective investment. Bush came in, simply cut the revenue, and the debt started soaring without anyone caring. Things crash just before Obama gets to town, and he's crippled by having to stimulate the economy in the good old-fashioned style of future borrowing. Who knows what was immdiately staved off. But he seems incapable or unwilling to actually cut spending, coupled with the fact that he caved to the right under this notion that the ever-growing wealthy in this country will somehow undo our economy if they actually pay previously accepted tax rates. And now the Tea Party is going to lock up the Republican Party and be certain that no discourse occurs outside of the no-new-taxes cheer. Yea, we just had one of those govenors for the last 8 years in Minnesota, and it spellls the same thing--debt that is passed off for a later day of reckoning. It'll be a tough pill to swallow...problem is we might not have anything to drink it down with!

Tim of MN 5:18PM March 31, 2011

... and it is named Jim. Jim of Seattle and Jim of NY - you guys are right on.

Jim of MI 9:17PM March 18, 2011

I have little confidence that politicians will seriously reduce our government spending or debt. The American public is just too stupid to understand the consequences of the situation. Most Americans believe they can get more benefits from government than taxpayers are willing to pay for.
Politicians are rewarded (by being re-elected) for gross incompetance regarding fiscal policy. As long as we have politicans who want to be re-elected and voters who want a free ride, we will have debt issues with government.
This is a basic flaw of a democracy.
And, someday, it will all blow up and the results will be disasterous.

Jim in Seattle of WA 10:04AM March 18, 2011

While all might not happen at once a few of these could and are probable with Obama and Reid. Serious budget work is needed and obamacare must be the first to go! I've seen enough of these two fools and wonder when a Democrat will call for Obama to step aside in 2012. Worse than Carter and far more dangerous!

JIM PETRILLO of NY 9:46AM March 18, 2011