Tuesday, September 1, 2009

Gov't debt is not "environmentally sustainable"


  1. I have trouble coming to an understanding that our country, in all of its previous financial pilotage, has become one of the highest debt nations in the world. How can leaders sit in ignorance to this problem and have the blatent disrespect for our lenders in continuing spending? On the other hand, if you're still willing to lend this country money, you really don't deserve the money in the first place.

  2. Actually Austin, I very much doubt any country sincerely believes America will default on its loans (file Bankruptcy). If this happens, it will send the entire global market in a shock for decades interrupting and disrupting normal operations for other countries.

    On the contrary, they lend because they believe America will pay back. At some point, we will have to either tax to pay for our debt, or inflate our currency (which is useless because international agreements are always indexed against inflation for that very reason). America will have to tax to pay off the debt.

    It is in these countries' best interest for America to hold on to this money for as long as possible, just like it is for a credit card company to extend you credit without the threat of bankruptcy.

    It is a dangerous game of easy money, governmental temptation, and economic hardships. Taxes or a revolution will be the outcome.