Tulio is worried about the national debt, for no good reason. He’s been reading too many articles in the corporate media:
I agree with most of Reich’s article, but I don’t agree with him on raising the debt ceiling. The debt is out of control and the fed is printing money like there’s no tomorrow. If we weren’t the world’s default reserve currency (for now anyway), we’d be royally fucked.
We need not just a tax on the elite’s income, but we need a tax on wealth perhaps. For the super rich, their income is only a small part of their wealth. Their lawyers are paid very well to hide their wealth from taxes.
Poor Tulio’s been brainwashed here. He’s repeating one lie after another.
The debt is out of control…
Nope, not at all; in fact, it is quite low; but the deficit is high, and if high deficits continue, the debt will slowly worsen.
…the fed is printing money like there’s no tomorrow.
Good for them. This is what Central Banks are for, no? The major risk you run in printing money is the risk of inflation. At the moment, the risk of inflation is precisely zero. In fact, we have the opposite risk, one of deflation.
If we weren’t the world’s default reserve currency (for now anyway), we’d be royally fucked.
LOL, and why is that? We’d be royally fucked because we have the 2nd lowest debt in the industrialized world? Explain.
The national debt is nothing at the moment. It’s the 2nd or 3rd lowest debt in the Industrialized World at 71% of GDP. All this worry about the debt is simply crap.
The debt ceiling is raised every year. It’s a technicality.
However, the deficit is pretty high, I must admit. It’s 20% of GDP. The deficit is for the most part being caused by the bailouts, the various tax cuts, the various corporate giveaways and mostly by the terrible economy, and primarily by the financial crisis in which the financial sector is saddled with bad debt and won’t lend money. The deficit will apparently continue for as long as the economy sucks. I’m not worried about the deficit for the time being, but if it keeps going like this, there’s going to be a problem at some point.