Reducing the Deficit... Is it really that important ?

[oladub]

Jobs and profits are being created. The problem is that many of the jobs are not being done by US workers. Moving production overseas and setting up a caste system in this country of illegal alien labor is profitable and does not require the hiring of more expensive US labor. Solve that problem and there would be a natural demand for US workers who would then demand a larger share of the national economic pie. A resurgence of unions would be one expression of this demand. Neither party wants this. Also, the Federal Reserve was discovered to have handed $16T out to its banker friends and owners. This creates a bubble. The money has to go somewhere. Some of it wound up pumping up the stock market. We have had the Nasdaq bubble and the housing bubble recently for the same reasons.

Obviously, Democrats do not think that deficits and the debt are problems. Bankers love them. Both parties are richly endowed by bankers. Printing $16T increased the supply of money which, in turn, is temporarily suppressing interest rates. Record low interest rates won't last forever though.

Dividing the $16T national debt by 310m Americans equals $51,613 of federal debt per American. President Obama is by no means solely responsible for this. The first 43 preident accumulated $11T of the debt while President Obama has only added $5T, so far, in his first term. Every one percent the interest rate goes up will cost every American about $516. If the federal government has to pay 5% to market bonds, an average family of four would owe an extra $10,323/annually just to pay down the interest on its $16T debt.

China has a budget surplus and is investing its surplus in Canadian oilfields, farms and colonial population settlements in Africa, forests in S. America for its future generations. Meanwhile, we are burdening our future generations with debts. Who owns the future? Maybe the debts and interest on our kids were the chains Joe Biden was warning us about.