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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (353675)	10/6/2007 6:25:59 PM
From: tejek	Read Replies (1) \| Respond to of 1574711

$9.5 tril, in non-inflation adjusted terms, over a very long time, in a growing economy that's starting our larger than $9.5 tril a year, while also experiencing inflation which adjusts the value of those dollars downwards, is relatively minor. Relatively as in relation to something else, not as some absolute standard. Compared to most costs, or debts, or budgets, or other dollar figures, $9.5 tril is VERY big. But its no so big compared to the economy of the US over the next several generations which might be well over a quadrillion dollars (again in nominal terms). Its less than one part per 100, maybe much less. I see......you think the debt amount will remain static while the economy grows. What a wonderful world that would be....but it ain't going to happen. Even if there was no inflation, the interest would make it grow, assuming we don't pay the principal down. In the meantime, countries that are less than friendly to us are buying the paper behind the debt......that puts in a not so great position should trouble ensue between the US and those countries. Americans have sold themselves a bill of goods that debt ain't so bad. Not true. Its bad because it means you are living above your present income. That's, in part, why subprime has become such a problem. Also note by "relatively minor" I don't mean insignificant. Some useless government program spending a billion dollars a year is relatively minor in the context of a US federal budget approaching $3tril a year. But its still not a good thing, or something that I wish to see ignored. The extra debt is more significant that that hypothetical program. In fact much more. It is something to be concerned about. On that we can agree.