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Sunday, April 10, 2011

budget conundrum


The national interest of the United States is that of a debtor. Its interest lies in continually lowering the value of each outstanding dollar bill.

The personal interest of most Republicans (and anyone else who has a sliver of money) is the opposite.

That is that essence of the budget fight.



The Obama budget calls for the U.S. to pay out $900 billion net interest in year 2021 -- of course, all with newly minted, fresh-smelling new money.  

The Republican figure is not that much better:  $600 billion.



The bear market will come when ...