When Regan was president, the federal debt grew to huge proportions. People kept saying, "our kids will be saddled with a huge debt."
Well now, a lot of those kids are adults. Kids of the Regan era are now grownups.
Are they having to pay back the debt?
Doesn't look like it. Debt is still growing.
This makes me suspicious. Will the debt ever need to be repaid?
Seems like people always say the children will have to pay it, but when those children grow up, the debt just keeps growing.
Wonder if it will ever need to be re payed?
Debt is the path of least resistance for the Federal Government since either raising taxes or cutting the budget causes an outrage.
People say, "don't raise my taxes," but they also say, "don't cut veteran's benefits," for instance.
Going into debt seems to be the path of least resistance. Seems like there's no consequences to running the federal deficit.
People have said that interest rates rise when the federal government eats up capital with deficit spending. I'm suspicious again. During GW Bush's big deficits, interest rates have been low. So low that the real estate bubble resulted.
Maybe they never have to pay off the debt. It doesn't even raise interest rates.
Just get the federal Reserve to print money; I guess. Only consequence is inflation from more dollars in circulation.
Interesting to note that until just this last year, inflation seemed to be only rampant in a few sectors.
Real estate values and health care, for instance.
In other sectors, inflation has been moderate. Other sectors such as food and consumer goods.
That's been up until this past year. Now things are changing again as energy costs rise.
* I'm still on my summer trips. This was posted from WIFI in a Portland, Oregon hotel room. Stay tuned for more trip details and photos. Hello from Oregon on this Labor Day weekend.