The Fat Lady is Singing - Obama's Real Legacy is Debt

[esmith]

A fair chunk of the Obama increase (maybe 1/3 or so) was quantitative easing, which is effectively debt the government owes to itself and so doesn't have to be repaid (interest in the debt returns to the treasury also). As such the debt levels are perhaps overstated by 15-20% or so.

This wasn't 'free money' though as it basically diluted the value of the rest of the money in circulation (but therefore also diluted the amount of existing debt).
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Sounds like you have been listing to Paul Krugman as put forth in the following article.
Krugman: Don't Worry About Debt; We Owe It To Ourselves
Then again maybe you see your statement as something different.
So to be perfectly honest what money does the government owe itself and why, in your mind?

 

[Augustus]

Sounds like you have been listing to Paul Krugman as put forth in the following article.
Krugman: Don't Worry About Debt; We Owe It To Ourselves
Then again maybe you see your statement as something different.
So to be perfectly honest what money does the government owe itself and why, in your mind?

Did you actually read the rest of my post? (hint: it was highly critical of QE)

 

[metis]

The only thing that's really negative with the debt is that we must pay interest on it, and that paid interest that leaves the country is potentially lost unless it ends up being reinvested here. We have had debt going back for many decades and yet we are still the #1 superpower economically.

IOW, the national debt is not as much of a boogeyman as some would have it.

 

[esmith]

Did you actually read the rest of my post? (hint: it was highly critical of QE)

Yes, but it was somewhat confusing, at least to me. But the section about debt owed the government is basically what Krugam was saying. I have read your post twice and it is confusing, again highly possible I'm not reading/understanding what you said.

 

[ShivaFan]

Day 1 Year Victor

Resistance is futile.

Soon the worm will turn.

Obama ... who?