U.S. Debt Crisis 2009, What must our Creditors be Thinking?

Interest-Rates / US Debt Jan 09, 2009 - 11:46 AM
By: Chris_Galakoutis
Interest-Rates

I read an article recently about problem gambling. You can't help but notice all the poker on television these days. Gambling, lotteries, and all forms of speculation become more popular in inflationary times, as more people have difficulty making ends meet. Problem gambling has been known to strain relationships, interfere with responsibilities at home and work, and lead to financial catastrophe, as more good money is thrown after bad.

Throwing good money after bad is precisely what the folks in Washington D.C. have been doing for years. And just like the addicted father, it is the next generation that pays the price. In many ways politicians are no different than addicted gamblers, and this latest bunch, planning to spend trillions with money they don't have, are the cream of the crop. I was delighted by Barack Obama's election to the office of President, given his statements on foreign policy during the campaign. However spending trillions and adding to the debt mountain, without allowing for the natural forces of an ailing free market economy to heal itself, will be futile.

We have been chronicling the US debt problem for years. An article titled “China Losing Taste for Debt From U.S.â€