05-31-2017, 03:06 PM
(05-31-2017, 02:31 PM)David Horn Wrote:(05-31-2017, 11:18 AM)Bob Butler 54 Wrote: If the bulk of the World War II debt was gone around 1980, how is it that "all the debt from World War II is still on the books"? The debt took off again just as the unraveling memes kicked in -- trickle down, borrow and spend, stronger military, the government is the problem. I'm more inclined to say the unraveling memes are factors in the modern debt rather than World War II restarting.
Seems to me you are double-thinking badly in an attempt to falsely sell a talking point.
No, the actual debt rose the entire time. Bonds are redeemed, and new ones are issued. What changed was the size of the economy, because growth, for whatever reason, and inflation, for less desirous ones, makes the GNP/GDP grow every year ... unless we have a crash.
![[Image: GDP_to_Federal_debt_of_the_United_States.png]](https://upload.wikimedia.org/wikipedia/commons/9/92/GDP_to_Federal_debt_of_the_United_States.png)
Exactly right. The federal government has been living beyond its means for a very long time and this will not continue indefinitely. There will come a time when confidence that the debt can be paid and then everyone will bail out of Treasuries. If it wasn't for the petrodollar this would have happened long ago.
Democracy is the theory that the common people know what they want, and deserve to get it good and hard. -- H.L. Mencken
If one rejects laissez faire on account of man's fallibility and moral weakness, one must for the same reason also reject every kind of government action. -- Ludwig von Mises
If one rejects laissez faire on account of man's fallibility and moral weakness, one must for the same reason also reject every kind of government action. -- Ludwig von Mises