Last week I wrote about the U.S. national debt and I received many comments from our readers, some of which are found below. If you have something to say about this or any other topic, please leave us a comment.
“The good news regarding the debt: If these bailouts work, we’ll get that money back in a few years. Much more troublesome is the debt we had already accrued through 2007 …
“A reasonable approach is not to worry about paying back the deficit. That seems impossible. What does need to be done is balance the budget, which will be painful but is possible over a few years’ time. If we do that, then the burden of the interest on the debt will lessen over time.
“But does the nation have the willpower to do even that? I doubt it.”
J.
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“I believe your numbers that we owe are terribly incorrect if you consider that those people who don’t pay any income taxes now, the additional ones that will not pay taxes under Obama’s new plans and how do we account for those who can’t pay their mortgages? Seems to me the numbers will increase significantly per middle class American. How frustrating is that?”
L.P.
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“Someone important said long ago, (I don’t remember who), that democracy works fine until the politicians discover that if they pass out entitlements, and gifts to the public, they can get re-elected. When they fully comprehend that principal, democracy fails.
“Our politicians have learned this well.
“I fear that your wish for fiscal responsibility is a far off pipe dream.”
G.M.
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“Keep pounding on the debt issue. It is the most serious problem we have had since the Great D. In all likelihood, we’ll print more money, which will lead to serious inflation. God forbid China redeem its Treasuries, although they are talking about it. And, they’re talking to the Russians about more trade agreements, particularly on energy.”
G.S.
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“The national debt? It’s disgusting and we’re just now seeing how dangerous. I blame both houses of Congress since they initiate the bills that become law. The president can only push, but that’s important as well. I only hope that as the nation works through this we do not return to our old reckless credit ways. But I fear greed is the larger driving force.”
Best Regards,
W.W.
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3 responses so far ↓
1 Gilbert Schwob // Nov 9, 2008 at 5:17 pm
I am afraid that, in a way or another, dollar will be depreciated. And this cannot be done the way Greenspan used to do: pace after pace. It has to be done abruptly and the sooner the better!
But will the other Nations agree?
2 Alice // Nov 16, 2008 at 1:21 am
Bailouts will not work. It is like throwing good money after bad. Have we not learned our lessons about debt?. The gov is intervening in the natural free market forces, thinking politicallly that it will help them get re-elected. In so doing, the economy gets worse. It is a change alright from bad to worse.
It will lead to high inflation and debasement of the dollar or a depression.
The more bail out there is, the less purchasing power of that dollar in your wallet. So as a consumer, and with cost of goods skyrocketting, I will just shut my wallet and buy only what my family and I need.
Let those failing businesses fail or file bankruptcy. That is the natural free market forces.
Lower taxes across the board, individuals and corporations is the right thing to do. Let us just hope Obama will change his mind of taxing corporations heavily that will surely kill jobs. Jobs is what we need to have more of, not bail-outs of banks, lenders, financials and corporations who led is into this mess to begin with.
I am an investor. If my taxes on dividends, interest and capital gains will be raised. I will get out of the market or make sure I do not earn any interest or dividends or capital gains. There is no incentive to invest anymore.
The hope of the bail-out is to thaw the frozen credit markets, let the banks lend again to each other or to consumers. But who or what kind of consumer will borrow, those whose houses are in foreclosure?, those who lost their jobs?, those retired seniors whose pensions were decimated by the fall of the value of the stock market to less than 50%? Banks will not or should not lend to these types of borrowers, if any. So it is a stalemate. Bailouts will not work.
3 L.K. Moore // Nov 16, 2008 at 10:55 am
Sir,
I do appreciate your research and your letter. However I do get weary of the advertisements and “resting on your laurels” of past successful winners. I know you sell a newsletter but come on there have been many failures. I bought some of them.
This is unprecedented I understand but being 59 and wanting to retire I don’t have twenty years to recover. Perhaps, if I quit smoking?
My father who was a “roughneck” (oilfield) with very little cash always told me to buy when the people are selling!! It has served me well. I sold a company I spent 27 years building. Almost went down three times but was successful because I stayed debt free.
My wife and I only bought what we had the cash to buy and if we wanted it bad enough we “saved”. What a novel thought! Now we try and teach our children and grandchildren the same principals. I am not concerned about Warren Buffet, nor Barack Hussein Obama. I am responsible for me and my families survival.
Thank goodness God is in charge.
Best,
L.K. Moore
Texas
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