Catfish and Cod
Wednesday, July 16, 2003
Andrew Sullivan doesn't like our budget policy.
(Link path: Andrew Sullivan)
As well he shouldn't. A five trillion dollar debt was astounding, but I thought he had the slightest chance of paying it off over, say, fifty years. A ten trillion dollar debt simply can't be paid off, and that's where we're headed. If any major banker gets it into their head that the "full faith and credit of the United States" isn't all it's cracked up to be, what happens?
The only reason we're not already in trouble is that Greenspan has set interest rates so low. Japan is locked in a loop: it can't admit its staggering debt, for the economy would collapse; so interest rates stayed locked at zero, and investment stays low, year after weary year. Is this the fate of the United States? Stay tuned.