Saturday, November 24, 2012

Why American debt matters

"The debt we create is basically money we owe to ourselves, and the burden it imposes does not involve a real transfer of resources."

              -- Economist Paul Krugman in a recent article

The problem with this reasoning is that Klugman is a quack. He doesn’t understand money and debt as well as, say, a certified public accountant. "Money we owe to ourselves" can grow so big and so fractious that it ruins nations.

Here’s a link that shows, in plain language, the havoc created by too much borrowing:

http://www.american.com/archive/2012/november/lenders-and-spenders-confronting-the-political-reality-of-debt

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