Krugman says we don't have a debt problem View another article
 
Paul Krugman states we don't have a problem with debt because our interest rate RIGHT NOW is low.

What Paul fails to grasp is that lots of money was buying US bonds because it's considered a "safe haven", driving rates lower.

Many foreign countries, such as Japan and China, have buying US dollars with their excess trade surplus money. This is not going to last forever, as China is already moving away from US bonds.

This ridiculous argument nonetheless appears, until interest rates shoot up because of our massive debt.

That's the problem with having such a huge debt problem; everything is fine with massive debt your employer has until you go to work and find locks on the door of the place you work because they went out of business.

Everything is fine with having massive personal debt until they repo your car one morning, or foreclose your house.

As we have seen with Greece and elsewhere, debt problems manifest themselves very quickly, which could be a few weeks or months. After that is years of pain trying to manage the debt you couldn't (wouldn't) control.

That's what makes Paul's argument so incredibly stupid; looking at the interest rate we pay right now and denying we have a debt problem is the height of the stupidity our politicians have been feeding us for so long.
Topic How this article applies
Deficit (10)
Economy (8)
Obama (9)
Democrats (10)
Republicans (10)
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