McB, if America continues with these wars and confrontation with the east? How much can she borrow to support this, instead of supporting its own econemy?
It seems to me that Bush ignored Greenspan and decided to play a game of politics instead, so how can Jayhawk justify his statment of the President and taxes?
Two very important things come into play on the debt side. First, yes we can continue to borrow and keep running up the debt. It chokes each and every Federal Budget in that we have to service that debt daily.
Second, we, as a country tend to simply throw money at the problems and in this case, that actually means printing more of it. As that new money is introduced into the system it depreciates the existing currency [depresses the dollar] and exacerbates the problem further as so much of this debt issue is international and requires a STRONG DOLLAR to start actually fixing the problem.
So, the circle of issues are that we got ourselves into this because nobody in government was paying attention to the problem, regulators were watching porn [or Matlock reruns] and allowed the financial sector [now our most important sector since manufacturing has been decimated] to start spiraling out of control, fully deregulated and winging it, trying to cover its tracks and recover [think gambler who keeps thinking that, if I just try harder I can WIN my way out of this debt]. Then the Government adds monies, too late in the cycle and without FIRM CONTROL on the players. The sector continued to spin, try and hide and buy its way out of problems and the Government, now active but behind the curve has to keep throwing money into the problem to try to keep the overall economy afloat.
And the circle of failure will continue until ALL the bad debt is eaten up, ALL the bad decision makers [Government AND Corporate] are fired and ALL Regulations are stringently enforced. It will just get worse and more costly until those conditions are met.