The National Debt: Why Fret Over Something That Doesn't Exist?

[Krank]

http://realmoney.thestreet.com/articles/10/25/2016/national-debt-why-fret-over-something-doesnt-exist

[CitizenBBN]

Wow. I just read something written by the dumbest person alive. Or maybe the one with the driest wit.

I don't know if I'll live long enough to see the US become a Second World nation but it'll be close, and the debt will be the driving force doing it. it's actually much larger than the $20 trillion in on-book debt, b/c we have trillions in unfunded mandates and trillions more in state and local debts.

And yes, we actually owe that to people who are going to want their money.

[Darrell KSR]

​Very dangerous article, and extraordinarily misleading and deceptive.

He redefines a bond by claiming its not debt, but money in the hands of the holder, and then suggests everything is just a bookkeeping entry.

Either he has a bizarre understanding of how accounting works, how the economy works, or is just like Adolph Rupp, anything for a story.

Then again, nice to know I don't owe anything on my home mortgage, or my business line of credit, or credit cards. It's just bookkeeping.

[Darrell KSR]

Wow. I just read something written by the dumbest person alive. Or maybe the one with the driest wit.

I don't know if I'll live long enough to see the US become a Second World nation but it'll be close, and the debt will be the driving force doing it. it's actually much larger than the $20 trillion in on-book debt, b/c we have trillions in unfunded mandates and trillions more in state and local debts.

And yes, we actually owe that to people who are going to want their money.

I had my post typed but just not posted, and so I didn't read your post first--but I wish I had. I don't know the guy, so it could be a very dry wit--normally I pick up quickly on those things, since that's my modus operandi many times as well, and I don't really sense that--but it could be The Onion in disguise.

I have that national debt widget going for a reason on top of the board here--it's easy (that's the main reason), but it also is real. As you point out, it's even low. But if we don't become fiscally responsible as a nation, the nation will suffer greatly. I don't know the floor, but it will be awful.

[CitizenBBN]

I had my post typed but just not posted, and so I didn't read your post first--but I wish I had. I don't know the guy, so it could be a very dry wit--normally I pick up quickly on those things, since that's my modus operandi many times as well, and I don't really sense that--but it could be The Onion in disguise.

I have that national debt widget going for a reason on top of the board here--it's easy (that's the main reason), but it also is real. As you point out, it's even low. But if we don't become fiscally responsible as a nation, the nation will suffer greatly. I don't know the floor, but it will be awful.

It didn't read like dry wit to me at first but it's so massively wrong and simple minded I thought maybe I just didn't get it.

Three thing is I've seen this argument made seriously before, that it's not really debt bc we owe it to ourselves. The implication being we can just agree one day to make the number zero and is all good.

People who believe that are dangerous on so many levels.

[KeithKSR]

Why are we paying interest on debt that really isn't owed, and why will the interest payments on said mythical debt on pace to become our largest expenditure?

[Darrell KSR]

It's just paper, Keith. Nothing important. ;)