The US Federal Debt now stands at $10.8 trillion. Seems like a lot, right? Government apologists would be quick to point out that this $10.8 trillion is still “only” 77% of US GDP. I’d like to make several points.
We are in debt up to our eyeballs. Usually I would not be worried because enough economic growth can solve lots of problems. However, given our anti-immigration sentiment, our prtotectionist sentiment, and our wise investment choices made by the government in the stimulus bill and beyond (see here and here for just two of the many examples), my outlook on growth is a lot less optimistic than it was in previous years. I hope I am wrong.
Note the basic government debt data can be found here.
I heard all our debt obligations were 65.5 trillion the other day. But either way, I understand that WORLD GDP is only 45 trillion. I guess it’s time to consider buying gold.
It’s Not Our National Debt!
Join the Washington National Debt Revolt – Washington has bailed out the banks, Wall Street & their Washington special interests and much of the cost is added to the national debt to by paid by this and future generations while real estate and investments continue to fall. The Campaign to Cancel the Washington National Debt By Constitutional Amendment is starting now in the U.S. See: http://www.facebook.com/group.php?gid=67594690498&ref=ts
I can say from my personal experience that the amount of debt is not important if the money is utilized in such a fashion that wealth is created in a very high proportion. I am continuously borrowing and paying back and a big chunk of the money is going for investments. As the months roll by I know that my overall debt is increasing at a high rate but then my investment is growing at a much higher rate. So as more and more time passes the investment will become ten times more than debt.
Now there is a striking similarity between individuals and countries. So in case of America also the economy will ultimately attain such great height that all these debts will appear insignificant.
To Amitabha: What is it, precisely that government is investing in that will continue or enhance productivity so as to outpace the growth of its debt? It is bleeding the private sector, which historically has been responsible for the prosperity we have enjoyed. Aside from investing in goods and services that provide for the common defense of our liberties, what exactly is it that government can do more effectively than the private sector?