Tuesday, August 24, 2010

Begging for Alms Every Month

... is where we're at. This WSJ video describes just how much the we're borrowing with short-term bonds. If you want to fast-forward, the discussion gets really good at 2:00 and beyond. Remember the size of the debt load - more than $13T. 60% of $13T is about $8T. That's a lot of leverage.

The mechanics of this are interesting, but the larger-scale strategy is the really depressing part. What did we buy with all this debt? We bought entitlements and social programs that have tried and failed to take the place of the family.

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