""Of course this will end badly""
Western democracies seem to all be suffering from the same disease.
Our founding father's set up a very different democracy with 6% of the population electing president Washington. In 1776 to vote you needed to be a white male land owner. Capitalism and democracy have very different beliefs about the proper distribution of power.
Business is back to normal in Washington. ZH (You Are Here) had a chart showing Obama has raised the debt 36% already, Bush 45%, Clinton 1%, G.H.W. Bush +26%, and Reagan +92%. My point is they are all the same.
""I assume you missed my point. Raising the debt when debt to gdp is 30% is far different then when its 90% and your treasury debt is financed with short term notes that are quite likely to have rate hikes in three years.""
No Guts I didn't miss your point that deficits don't matter when republicans are in. My point was they're all the same. But you bring up a good point about short term vs long term debt which is the elephant in the room . We should be going as long as possible at this point maybe even a perpetual long bond. After the Napoleonic wars British debt soared to 300%. By 1834 the bulk of this was in 3% Consols (perpetual bonds). By 1860 their debt was below 100%.
What about spending cuts? I hear SS and Medicare will go broke so please lets have Ted Cruz test the waters here. How about means testing? How many receive multiple pensions? When a president leaves office he gets a pension for life and if he was governor of a state gets another pension for life and in the military pension for life, then works in private industry another pension. Lets see if people want to make these cuts.
I would think it important to think about how we are going to service the debt. . The percentages need qualification. Clinton(smartest theif in the bunch) benifited from the treasury shifting durations on bonds to shortest ever seen, so we spent less on interest. He also benifited from a windfall tax inflow from a stock market gone wild. He gets the credit but we have yet to pay the price for short duration financing (i give it two more years) and while everybody is rich again the debt is the highest % of gdp ever so where oh where will the revs come from?. When Reagan expanded the debt we were at 30% d/gdp(easy to find revenue) now were at 100 and going to 125. Clinton.bush and O have all benifited from low interest payments compared to previous years. The next president is likely to be a one term wonder because as these things go you can only blame reagan for so long. gl
""PMs will be the only currency left standing..""
Good post Buzz. Rome debased their denarius from 94% silver under Nero in AD 54 to 0.02% silver under Claudius Gothicus in AD 268. Sometimes these moves take time. Where is your punching bag delta? Did the government shut down eliminate his access to the internet?
"Of coarse the imperialist got his way without any negotiation or give"
You say 'of coarse' (sic), but a few weeks ago you claimed that defunding the ACA was gathering momentum. So instead of 'of coarse', you should have started with 'To my shock and disbelief, as I get all my news from political fundraising emails...'