Congress Moving to Increase the National Debt Shows Democrats Are Out of Touch

Point 1:

Well, it does and doesn't--even if the US were on the verge of default, which it probably won't. There's always a "Plan B or C." America's financial credibility has been tested a couple times before and each time it fell with grace. Sure, people panicked when Nixon dropped the gold standard, but it was overblown in hindsight. (Just look at the history of the Fed, post-WWII account surpluses and deficits, and the IMF.)

The fact is the modern world was built on US debt. The Marshall Plan's significance is often overstated and misunderstood. What Europe built with funds procured under the Marshall Plan is less important than the funds themselves. In fact, a lot of the money just stayed in the national bank, where it did more good than you might think. It's the money that mattered. WWII butchered the richest and most powerful nations of the early 20th century and left them broke and broken. Even worse off were some of their colonies. The only country in the world that had the capacity and the financial stability to recapitalize these countries was the US. In addition to government grants and loans, American companies, investors and public institutions liberally issued stock, debt and bonds to provide equity for global markets. This was the only way to ensure the expansion of trade. The flow of capital outside the US into foreign accounts was also essential in the fight against communism.

Point 2:

It is in China and Japan's best interests to hold the securities for as long as possible and sell them off as slow as possible. If they're not careful, inflation may rise sharply. Let's say Japan converts some of it US treasuries for yen dominated debt designed to pay off some of its existing debt. However, Japan has to be extremely cautious not to put additional inflationary pressure on the yen. A stronger yen hurts Japan more than it supports it. Japan doesn't want to increase its already high cost of living.

Point 3:

Our debt isn't really that high. It's not that much more relative to our economy than in 1992.

Point 4:

All money is debt. All stock is debt. Keep in mind the US is by far the most capitalized economy in the world. It is also the largest foreign investor. Americans have a lot of debt but they also own a lot of debt in other countries and in their own.

Sam of NJ 1:26AM December 20, 2009

Keep liberals out of government and your lives, you will learn one day!

2010 vote out all Democrats. We were much better off with George W.

The Bush stimulous is what stopped the supposed depression. And of course the liberals want to take credit but not the blame! You can't have it both ways.

Health care will pass with our money in deal making schemes that will continue to pile on debt. But they don't care it's our money. They have all the money anyone could wish for so no Congressman or Senator will ever be affected.

No American money should leave our country to help others, we should support ourselves and only ourselves. Vote out Democrats they are our downfall, especially the liberal the degenerate lifestyle an mind!

Go Green Up ur azz 1:27PM December 19, 2009

I complained long and loudly about the debts Bush was piling up for eight years, but I really has no idea it would come to this. And alot of the debt is not going to emergency spending. It is going to direct subsidies to government employees at the state and federal level.

Craig of NJ 9:44PM December 18, 2009

While it is true that Bush managed to turn surplus into debt, he had help. The congress, both parties, had to agree to that spending.

Contrary to the anti Bush forces, GWB was not a sith lord who worked his evil magic which all were powerless to resist.

Governments do not have any money that they didn't take from the governed. Every dime spent on your pet project was taken from someone else's pet project.

Gary J of FL 1:34PM December 18, 2009