It's the debt, stupid!
Friday, November 5, 2010 6:09:05 PM
But I don't like the gist of what Americans thought was important during the mid-term elections. To the tune of "Obama didn't do enough to get the economy back on track". Most recently, Paul Krugman sang that chorus again in an N.Y. Times commentary.
Krugman is an acknowledged top economist. You know, those guys that, in the main, thought the Fed was doing everything right up until about 2007. I'm not an economist, not even close. I've barely begun to understand the function of stock exchanges.
But I do think that the elections that just rushed past us - foreigners - on radio & TV might have had a look, as the German magazine SPIEGEL has just done in its current issue*, at the US national debt, and its development over the last decades. (I have the feeling they didn't; national debt probably ranked lower than Ms. O'Donnell's college antics.)
Notice something? There's a "Republican" curve in it, ever since Reagonomics really revved up the spending pedal in the early Eighties - despite the Republicans' often acting as torch bearers for "less government spending". There was a slight downward burp in the Mid-Nineties - Clinton was president - but it was rapidly corrected by Bush junior on the back of 9/11. Who then really moved the spending gradient into exponential overdrive. The SPIEGEL's numbers predict 99% of the USA's GDP will be eaten up by its debt mountain by 2012!
So maybe the world won't end in that year. But the new US "frugality" (cf. 3 blog entries earlier) had better address this monster, that is about to end the country's high jink$, or at least gobble up all taxes of their children, and grand-children, who at the same time will have nothing left to spend on public works, health care, saving greedy banks - all the o so important themes of campaigning days past.
Don't dream on, Americans. Wake up. Get real, real quick!
(* the graph is my doing, using the SPIEGEL 44/2010 values)