Posted by baseball55 on December 8, 2012, at 18:47:43
In reply to US debt..., posted by rjlockhart37 on December 7, 2012, at 21:31:30
We borrow in our own currency and can print dollars to pay the debt. It's different from Greece borrowing euro, which they don't print. Right now the interest rate (after inflation) on US debt is negative. People are paying the government for the privilege of lending to it. Banks and other wealthy people want to hold US debt. It's as safe as holding dollars. No default risk. It's really not a problem at all. Conservatives make it a problem because they want an excuse to cut Medicare, Medicaid and Social Security, cuts that most people oppose. But scare them with this boogy-man of the "debt" and, the hope is, they will accept cuts in programs that they support.
poster:baseball55
thread:1032621
URL: http://www.dr-bob.org/babble/social/20120929/msgs/1032667.html