Donald Trump thinks we don’t have to worry about defaulting on the national debt because we can always just print more money.
There is reportedly evidence–censored pages of the official 9/11 report–that some of the 9/11 terrorists received funding from Saudi Arabia, possibly including Saudi officials. A bill in Congress would allow Saudi Arabia to be held liable in any court proceedings. Now Saudi Arabia is saying that if that bill passes, it will sell off its $750 billion in American treasury notes and other assets. This could dramatically lower their value and harm the U.S. economy.
Beyond this specific issue (more details on that after the jump), the Saudi threat shows a big vulnerability in national security. Countries that own lots of American property or that America owes lots of money to have leverage over us. What if China cashed out its holdings in the United States? Or simply stopped buying American debt? Our national debt is being funded, in large part, by selling our bonds overseas. Which not only makes us dependent, but makes us vulnerable to foreign coercion, as the Saudis are trying to do. [Read more…]
Democrats accuse Republicans of waging a war on women. Republicans could come back with the charge that Democrats are waging a war on youth. So argues W. James Antle in the Washington Examiner. Not only are the Democratic party’s leadership and presidential candidates much older than those of the Republicans, but Democratic policies are proving especially harmful to young people.
For example: Obamacare forces healthy young adults to buy insurance to subsidize health care for old people. Democrats resist Social Security reform, jeopardizing young people’s retirement plans. The burgeoning national debt will have to be paid by today’s children and young adults. Democrats’ fealty to the teacher unions is preventing educational reform, leaving young people with inferior educations. Income and job prospects of younger workers have taken a huge hit during the Democratic management of the economy. Democrats also have a fanatical commitment to the most lethal assault on the young: abortion. [Read more…]
Greece has racked up a huge national debt and has such low economic growth that it is impossible to service that debt. Economics columnist Robert J. Samuelson points out that the situation in Greece is just an extreme case of what the American economy is up against. (Our national debt is now 105% of our Gross Domestic Product.) In fact, he says, that’s what a big number of the world’s nations are up against. [Read more…]
Charles Krauthammer is another candidate for best sequester commentary:
“The worst-case scenario for us,” a leading anti-budget-cuts lobbyist told The Post, “is the sequester hits and nothing bad really happens.”
Think about that. Worst case? That a government drowning in debt should cut back by 2.2 percent — and the country survives. That a government now borrowing 35 cents of every dollar it spends reduces that borrowing by two cents “and nothing bad really happens.” Oh, the humanity!
A normal citizen might think this a good thing. For reactionary liberalism, however, whatever sum our ever-inflating government happens to spend today (now double what Bill Clinton spent in his last year) is the Platonic ideal — the reduction of which, however minuscule, is a national calamity.
Or damn well should be. Otherwise, people might get the idea that we can shrink government and live on. [Read more…]
I knew it would only be a matter of time before the newly-ascendant left applied some postmodern linguistic constructivism to make our problems go away. From Zachary Karabell in the Washington Post:
Debt is simply a new form of currency that is issued, bought, priced and sold like any other currency, [Read more…]