Lords of Death Forums Lords of Death Forums LoD General Discussion What does our national debt imply for the future?

keep in mind that it takes on average 4 to 6 years for political decisions to effect an economy....
If anything, the tax-cuts Bush implemented propped up the US economy thus the solid stock market for the past 2-3 years. Valuations are astronomical.
Also, there is economic theory that believes a slash in taxes and the acceptance of fiscal debt will move or pull economies out of the toilet. It is dependent, however, what is done in the future to erase the debt that is pilled on....something Reagan nor Bush have addressed or figured out how to do. Reagan pulled the US out of a NASTY recession and inflationary economy...Bush did the same right when he took office....the democrats come in to power, and preach a different type of economics that is based on taxes and improving productivity...both are counterintuitive on what they are out to accomplish.
The US has the HIGHEST interest rates out of many other developed countries. That has spurred foreign investors (namely China) to invest in the US. For no other reason than that alone. The US just cant decide to one day go to war by issuing debt...if there is zero demand (if our rates were lower than South Africa for example) people would not buy our debt. The US has another reason to issue debt. The Pension situation in the United States (that a republican dominated house and senate passed by the way)....you think it is all blind, this act of government is going to torpedo more corporations than you think.
What did Clinton do during his tenure? Spent a little less than the projected amount...."we have budgeted -100 million, but we only spend -80 million, we deserve a pat on the back"....
Trust me, im not saying that the war chest money could have been spent on better things than a war, but to say that the looming downfall of the economy is Bush's fault is complete crap....you can however "blame" clinton for the 2001-2003 recession if you get right down to it.
The key problem is the US consumer and workforce...productivity hasnt moved and we spend money like drunken sailors.....there is zero saving.....our economy right now is positioned much like Japan in the 80s. A conservative Fed did the right thing by spiking rates and rising them so it gives them wiggle room when a recession and housing bubble is looming...