(02-04-2018, 02:51 PM)The Real Marty Wrote: When investors start to lose faith in the ability of the federal government to manage its finances, they will start to demand greater interest payments on federal debt.  That will mean the government has to issue new debt and roll over old debt at higher rates of interest.  That means the government will have to borrow more money just to pay the increased interest on the debt.  That will further depress investors' faith in the financial management of the US government.   And that will drive interest rates ever higher.   Rinse, repeat.  Rinse, repeat.   The debt spirals out of control.   At that point, the government either "prints" the money to cover the debt, or it declares bankruptcy.   So either we have spiraling inflation, or we have a worldwide depression.  

I challenge anyone to refute any of that.  

We can still manage our way through this fiscal problem, but we have shown no inclination to even try.

I don't refute it, but the largest investor in America is still the American people and the next creditor is not close. All we have to do to fix this is elect people who will actually reduce the size and scope of the government; no small task when those getting elected every year do so on a platform of doing the exact opposite.

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