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Sunday “Rising Tide”

June 5, 2011

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3 Comments
  1. texan2driver permalink
    June 5, 2011 1:36 pm

    A rising debt ceiling lifts… debt. There is MANAGEABLE debt, that can be used for good such as buying homes and cars. However, it is only good as long as the debt is at a level where it can be serviced while still allowing growth. Beyond that, debt is bad. What does bad debt increase? Servitude, unemployment, inflation to name a few.

  2. James permalink
    June 6, 2011 12:37 pm

    National debt is good in that it establishes a benchmark for other returns, both other national and commericial. IT is nice to have an investment out there that is considered the closest thing to zero-risk. Right now that is still US Treasuries…and for that alone it is good to have a managable level of debt. But not near the largest it could be – you have to keep room in for crisis action and non-standard events, something neither party has learned…

  3. texan2driver permalink
    June 10, 2011 10:28 pm

    If, and I stress IF, treasuries are the best current investment, and as close to zero risk as one can get (debatable), that is a pretty sad statement on the health of our economy. A “manageable” level of debt is one that can be paid in a defined period of time, and is actually getting smaller as that time approaches, or is at least not growing as old debt is paid and new debt is accrued. What we are seeing is exponential debt growth that can’t be paid, and there is no real plan to do so. There is no room in our “credit line” for the crisis you mention. Yes, NEITHER party as a whole has figured this out. A few conservatives, and even a few lone democrats are starting to get a clue, but for the most part they are all still adrift in a sea of worthless currency.

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