Insurmountable Debt

Our government is borrowing and spending too much money. It will collapse the economy soon. The first people to trumpet this news

were called right-wing paranoid whack jobs. What will they say now that the NYT is bringing the issue to the forefront?

Treasury officials now face a trifecta of headaches: a mountain of new debt, a balloon of short-term borrowings that come due in the months ahead, and interest rates that are sure to climb back to normal as soon as the Federal Reserve decides that the emergency has passed.

Even as Treasury officials are racing to lock in today’s low rates by exchanging short-term borrowings for long-term bonds, the government faces a payment shock similar to those that sent legions of overstretched homeowners into default on their mortgages.

The problem, many analysts say, is that record government deficits have arrived just as the long-feared explosion begins in spending on benefits under Medicare and Social Security. The nation’s oldest baby boomers are approaching 65, setting off what experts have warned for years will be a fiscal nightmare for the government.

“Clever debt management strategy,” the group said, “can’t completely substitute for prudent fiscal policy.”

Plus SNL did a brilliant send up of our debt vis-à-vis relations with China. I too like to be kissed when someone is doing sex to me.