America's debt

Shame on them

The Republicans are playing a cynical political game with hugely high economic stakes

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"While rejecting even the most sensible changes in the tax code to increase revenue,"

The last time the Republicans agreed to a "sensible change in the tax code to increase revenue," the Democratically-controlled Congress simply increased spending. Clinton tried the same thing after signing his tax increase in 1993 to try and fix te deficit, but then in 1994 the Congress came under Republican control and Clinton began governing like a fiscal conservative. Furthermore, such tax hikes right now could hurt the fragile economy.

"Republicans in the House are prepared to end Medicare for future senior citizens, in effect replacing it with a wholly inadequate subsidy program."

What is your suggestion to save it? Medicare is wholly unsustainable. The Democrats live in a fantasyland where in Medicare will last forever, but the reality is that it is a failure of a program, as it is not going to last. The Republican plan is not to end it, but to figure out a way to SAVE it, by changing the mechanics of how it operates. At least they proposed something, unlike the Democrats. Of course, the Democrats pulled the complete opposite regarding healthcare overall, in which their constant argument has been, "Healthcare costs are unsustainable, so we have to do SOMETHING," which they then rammed through via every legislative trick in the book. Well Medicare is no different, its costs are out of control and "something" must be done. If the Democrats don't like the GOP then they need to come up with their own alternative that is workable.

"As exhibited by these policy positions, the level of dogma present in the current Republican caucus ensures that the debt limit negotiations are going to come down to the wire."

Dogma has nothing to do with it. What we have is a president willing to do absolutely nothing about the debt, not any kind of long-term debt management plan whatsoever, and a massive spending problem. Tax hikes are not goingto fix the spending problem the nation has.

christina Marlowe

THIS is America Today:
Kleptocracies are generally associated with corrupt forms of authoritarian governments, particularly dictatorships, oligarchies, military juntas, or some other forms of autocratic andnepotist government in which no outside oversight is possible, due to the ability of the kleptocrat(s) to personally control both the supply of public funds and the means of determining their disbursal. Kleptocratic rulers typically treat their country's treasury as though it were their own personal bank account, spending the funds on luxury goods as they see fit. Many kleptocratic rulers also secretly transfer public funds into secret personal numbered bank accounts in foreign countries in order to provide them with continued luxury if/when they are eventually removed from power and forced to flee the country.
Kleptocracy is most common in third-world countries where the economy (often as a legacy of colonialism) is dominated by resource extraction. Such incomes constitute a form ofeconomic rent and are therefore easier to siphon off without causing the income itself to decrease (for example, due to capital flight as investors pull out to escape the high taxes levied by the kleptocrats).
An early phase of this is driven by tenderpreneur elites who seek to capture resources for personal benefit.[1]

In addition, the money that kleptocrats steal is often taken from funds that were earmarked for public amenities, such as the building of hospitals, schools, roads, parks and the like - which has further adverse effects on the quality of life of the citizens living under a kleptocracy.[2] The quasi-oligarchy that results from a kleptocratic elite also subverts democracy (or any other political format the state is ostensibly under).[3]


Decade after decade, rampant and blatant high crimes among elected government officials and among the uber-wealthy whom run large corporations, continue to grow worse and worse here in America. As I look 0n in utter disbelief, as political events unfold both here in America and around the world, a rather clear pattern emerges: Not one of these political and/or corporate powerhouses is EVER prosecuted for breaking ANY laws, whether U.S. laws or international laws. And make no mistake, these laws that these apparent "untouchables" brazenly, cavalierly and CONSTANTLY break, are very, very serious laws; Laws for which WE OURSELVES would go to jail. Fraud, scheme to defraud, elder abuse, profiteering, WAR CRIMES; the list goes on forever. Again and again, year after year, I see these filthy bastards breaking every single law on ANY and EVERY book, and STILL not ONE of them is EVER held accountable!! FOR ANYTHING!! One of the most glaring and recent examples without a doubt is the Bush, Cheney, Rumsfeld, Rice, Rove, WAR in Iraq. And, of course, all the other clansmen that get away with MURDER. Not only is this incredible; it is also unforgivable. OBAMA IS THE SAME. I also see that NONE of the CORPORATE-OWNED media/press follows through on ANY of it. The U.S. Department of Justice, along with any other law enforcement agency, do absolutely NOTHING; it's all a JOKE. In fact, ALL of these CRIMINALS get FULL ASYLUM here in America. Just Remember: It was Obama that clearly stated that he would not get involved in prosecutions of (war) crimes; He said, "I want to look forward, not go backward." Well, I say to him, I want to move forward by upholding U.S and the world's laws. If we continue to totally ignore crimes and the criminals, it only gives both the criminals and the would-be criminals license to behave as if they're above the law. And that is exactly how they conduct themselves. Indeed this is a travesty.
I now say directly to Obama (et al): SCREW YOUR CRIMINAL EMPIRE!!!!!!!

With Utter Contempt,

Christina Marlowe


I, of course, refer to defence spending where, as this publication states, the US spends more than the next 17 largest spenders combined."

That's because everyone else spends virtually nothing, not because the U.S. spends too much.

"And yet the Republicans line up to refute any need to reduce this spending & if anything, praise requests to increase it."

That's because too many areas of the military are perpetually underfunded.

"Am I the only one aghast? There is no Soviet Union or Warsaw Pact any longer;"

Yes, and when the Soviet Union broke apart, the defense budget was literally cut in half, undergoing the largest drawdown since the end of World War II. Defense spending today is at a historical lowpoint, both as a percentage of government spending and as a percentage of GDP.

"China is way behind the US in military might & most Western countries show themselves to be more than adequately protected against terrorism whilst spending a fraction of the US total."

That is because they are protected by the U.S. defense umbrella. It is the U.S. that keeps the sea lanes open and underwrites global security and global trade.

And BTW, you could eliminate the U.S. defense budget three times over and not even close the federal deficit as it now stands. The major thing driving the deficit is ENTITLEMENTS, which are out of control, primarily Medicare.

dave of the coonties

Today's debt limit negotiations should give a reasonably clear idea of whether Congress will raise the debt limit. If it looks like "no," it'll be interesting to watch the US markets, tomorrow, Monday the 11th.

I've delayed getting my money out of stocks. By tomorrow afternoon, that could prove a bad mistake.


From raising the limit seven times during the Bush years, to playing chicken with it since Obama took over. Good to see the Republicans continue to contradict themselves. Most of them probably forget whom legitimized a continuing deficit.

Steve Harvey

In my on-going dialogues with libertarians/Tea Partiers (many of which can be found reproduced on, and occasionally with their counterparts on the left as well, I have been drawn repeatedly to the recognition that the real political divide in America, or at least the most fundamental and salient political divide in America, is not between any two substantive camps, but rather between those, on the one hand, who are convinced that the world is a very simple place, and that all of its problems and challenges can be resolved by some very simple formula, which just happens to be the simple formula that they adhere to, no further thought or discussion required, and, on the other hand, those who recognize that we live in a subtle and complex world, that the challenges of governing ourselves were not taken from us for all time and in all ways by the framers of the Constitution, that whatever it is we each think we know is fallible, and that arriving at the wisest and most reasonable conclusions and policies is hard work requiring knowledge, thought, discussion laced with at least some iota of humility, and compromise.

In one of these discussions, I actually composed a syllogistic argument defending this position, which, of course, the glassy-eyed fanatic with whom I was conversing simply ignored. But here it is, for those whose eyes may be slightly less glazed-over:

Macro Mondays

While the Republican line of refusing ANY necessary tax increases is ludicrous, the Democratic position to leave Medicare and Social Security untouched is equally problematic. Spending cuts are very important but they can only be effective if they address the biggest areas of spending, the entitlement programs.


As the Economist has already highlighted, the US budget deficit could be sensibly reduced by reviewing the spending on a topic often considered taboo, especially in Republican circles. I, of course, refer to defence spending where, as this publication states, the US spends more than the next 17 largest spenders combined.

And yet the Republicans line up to refute any need to reduce this spending & if anything, praise requests to increase it. Am I the only one aghast? There is no Soviet Union or Warsaw Pact any longer; China is way behind the US in military might & most Western countries show themselves to be more than adequately protected against terrorism whilst spending a fraction of the US total.

The defence industry has also been shown to be inefficient and wasteful (another source of potential cost cutting) but very little is heard on this front either. This is the one area where the Republicans seem reluctant to consider addressing inefficiency.

The defence industry is worth billions to private enterprise & the Republican Party values its standing as the party of free enterprise. You may wish to make a connection. I couldn't possibly comment.


What took you so long? There is no bravery or real value in stating the obvious. Are you guys ever going to get ahead of the curve?

The house next door is a smoldering heap, you comment that the fire is serious. The house next door is engulfed in flames, you say its burning a wee bit. The front bedrooms are burning out of control, you think you may have seen a little smoke and are concerned. You see smoke coming from the foundation and you say its really nothing important. Don't worry. Be happy.


What a biased left wing article! Pure garbage indeed! Why not quote a Senator Obama when he voted against an increase in the debt limits proposed by the Bush administration? "Raising the debt limit is just confirmation of the incompetence of the President and he should resign".

The USA has a spending problem, not a taxation problem. Why not quote Obama when he insisted don his trillion $ quantitative easing? He said without it unemployment would rise to over 9% in two years (2011) while by passing his program unemployment would drop to 6.5% by 2011. And where is unemployment today? 9.2%. In other words, Obama spends $1 trillion and all that happens is his banker friends make more money but unemployment is the same.

The author of this garbage article is truly clueless about politics and economics. Have he/she do obits?


Shame on Them? Shame on You!
When the President's own economist quits to the safety of the classroom because HE won't support Hussain Obama, there is a definite problem. It is only exacerbated by such incredibly biased viewpoints like The Economist to lead the public into a false sense of security. The point isn't to service our debt but to eliminate it.
The huge economic stakes game was already started almost 3 years ago. Now you don't like it when the Republicans slap your hands because you are totally, fiscally irresponsible?! Now you don't like it because you are finally being held accountable?! Suck it up and put on your Big Boy pants. Even Vladamir Putin called O'Bama and his Socialist Democrats a bunch of idiots for going down the same path that ruined so many other countries. Again, it's pretty bad when a Communist tells you that your actions toward communism are idiotic.

Shea Conaway

Although this article seems particularly daring for the Economist, as it puts the blame for the current stalemate squarely in the lap of House Republicans, it is difficult to read the news and come to a different conclusion.

While rejecting even the most sensible changes in the tax code to increase revenue, Republicans in the House are prepared to end Medicare for future senior citizens, in effect replacing it with a wholly inadequate subsidy program. As exhibited by these policy positions, the level of dogma present in the current Republican caucus ensures that the debt limit negotiations are going to come down to the wire.

I find it hard to imagine a solution being agreed to and fully developed in the next three weeks. It's going to be one interesting and destructive ride...


So, the US Government was able to run just dandy at 1.7 trillion in 1999, not so much at 2.9 trillion in 2008, and just can't seem to make ends meet at 3.5 trillion in 2010? Sorry, as a member of the "wilder eyed" crowd, the thought of our politicians racking up debts and deficits like money grows on trees, then trying to get us struggling folks to pay for it, is totally unacceptable. Mine and other small businesses are holding on by our fingernails, and the answer is to jack up our taxes? Do you have an economic deathwish??

Trond Johannessen

"Perfectly acceptable net debt of 65% of GDP"?
When you write about the Euro-zone you would ooh and aaah. But the skyrocketing net debt of the US is just going to be accelerating and reach over 80% of GDP by 2012, according to OECD forecasts, while the Eurozone will be at 61% and the UK at 68%. In 2007, the UK was at 30% of GDP and the US and the Eurozone at 43% of GDP. Do the math on the derivative of this curves and you can see that the US and the UK have wrecked their balance sheet in the downturn. There is NOTHING acceptable about the US balance sheet. They are not creditworthy and your eagerness to hand out blame seems to blind you to the cold fact that America is in trouble regardless of how the domestic litigation between parties will be resolved.

cap worthington

Americas government is embarrassingly inefficient and excessively wasteful. There is rarely the opportunity to hold politicians feet to the fire. Taxes are not the nations revenue. GDP is. If we can't pay our bills, we cut our expenses. We don't extort more money from the American public who generate gdp. Personally, I had enough of all politicians who are typically lawyers with no business sense at all. Seize the day. Just cut government spending!


At long last you criticise the Republican party! Wow, you have one of the world's best newspapers, but you always come up short, or late, on calling out the failed, and in fact, destructive antics of the right-wing Republicans in America. This article, which is accurate, is at least six months late. In fact, you could argue, Republicans have been playing these games with economic nonsense for years, but the risks were not as severe, and you tend to like the "small government" rhetoric, even if it has been unprincipled, cynical, and economically illiterate. This is what it has come to, and you are part of the media problem, not speaking up sooner and louder.


To Cybercod...

I am not quite the baby boomer you would like to shoot in the head, but you make me wish your daddy would have worn 'some protection',as you sound a bit like a numbskull yourself....

Do you think that every generation hasn't paid taxes for social security, medicaid and medicare, for more years than you have likely even known about either? We have all contributed and have heard all our lives that it wouldn't be there for us when we retired either. Those funds we paid are in hock and the vault contains nothing but a big IOU.

So why do you think the solution is a bullet in the head of every baby boomer...that most prolific, productive bunch of hippy freaks? What exactly would that cure, besides less taxes paid in from their great wealth?

You, poor victimized little twit, will likely hear the same things said when you hit middle age.


I hate to break it to you at The Economist, but most of us in the Tea Party are not 'fringe, nor self-proclaimed Christians, nor fanatics. I am an entrepreneur who attended a rally because:
1. I was disgusted that Members of our Legislature mucked around with banking laws that were working fine as they were...without consequence to themselves.
2. Banks were and continue to rape our businesses with ridiculous fees, while paying through lobbyists for the privilege.
3. No one to date has been indicted or faced culpabilty for the CDO scam that spread its poison throughout the developed world. Corrupt, and ethically bankrupt Industry leaders were bailed out with our money, but the SEC/Attorney General state they don't have the manpower to prosecute (A Mozillo does not count as he was fined exactly what he was given when BOA bought Countrywide with OUR TAX DOLLARS).
4. The Department of Energy has not made us less dependent on foreign oil...SINCE the 1970's. Just take a look at the Department of Energy website...why is our government selling patents? Did Bill Gates have government money behind his little operation in the garage? Cut.
5. The Department of Education has not made advancements in the level of education our children receive...since it's inception. However, it has managed to degrade the worth of a college degree. Cut.
6. The Department of Environmental Quality makes mandates, such as Government fleets that run on ethanol, when there is no distribution system, and then makes stupendous comments as "We do not pass regulations with the thought that there are solutions...we depend on the market to come up with their own solutions" long would anyone have a job with that attitude in an American business? Cut.
7. Federal Motor Carrier Safety Association is requiring all sorts of new technology on American carriers, but gives to to those arriving south of the border because a trade partner is taxing our exports by 50%??? This same agency with a budget of 7 million US$ in 2007 will command $464Million by 2012??? IN THIS ECONOMY? Yet it makes perfectly good sense to force us all to drive with people who are texting/talking on the need for legislation/protection here? Cut.

Our county is governed by lobbyist dollars and we are demanding better from our Government...both Republicans and Democrats.

We have changed from a Nation that believes in self-determination to one ruled with a heavy hand of "Californiazation" and it is breaking us. Most of us, while busy with our families, work, and little league baseball, woke up one day to realize that neither party was serving any citizen, but themselves. And that government agencies were in the business of establishing job security and running amok with legislation. Much of this legislation is thoughtless and the rest is for the good of the banks, insurance, big argi/chemical firms, physicians, government employees...whichever has the largest number of lobbying favors/dollars.

When I heard about both Obama and Palin, I was excited about the prospect, as I was a disenfranchised female Republican. I was disappointed in what was served up in both cases. I have been upset with the Tea Party for bedding with Republicans, as most of us know the Dems/Reps both only conduct poles and parrot what they think we want to hear.

What most people I talk to at Tea Party gatherings want, and what I want, is less government and less entitlement. Most of us feel that private companies do a better job than tenured government agencies. We also feel that our Judicial Arm had been paralyzed by opinion that confounded us and continually grows worse with graft and corruption. I work hard, and I am not against an increase in my tax. However, I want my tax dollars to stay in my state rather than running through the sticky fingers in Washington D.C. I want my representatives and my government's employees to be on the same retirement and insurance program as well. What's good for me is good for them, as we are all Americans.


The radical extremist-so-called republicans are primarily responsible for US National Debt.
President Reagan increased the National Debt 1865, Bush Sr. 62%. Clinton 36%, and bush jr. over 100% and still counting because of the "almost" collapse of the financial markets that created the "Great Recession" that has cost America 25% of it's wealth that took over 200 years to create and will take 40 years or more to recover.The US has 14,000,000 unemployed and only 3,500,00 will be employed at any given time, gas prices are up, food prices are up, health insurance is up, etc...

The radical extremist republicans waged the "Big Lie" campaign and were able to convince over 50% of the voters that it was the Democrats fault, the sub-prime borrowers fault, Fannie Mae and Freddie Mac's fault, and President Obama's fault. That allowed them to achieve the majority in the House of Representative.

The Fascist republicans with their narrow minded ideology of un-regulated capitalism gave their criminal corporate cronies the green light to legalize white collar crime. The result was the Great Recession. These "things" will not admit their miserable failures but cover it up with lies. They won't lift a finger to co-operate with the President and the Democrats to get America's economic engine going again. They have obstructed every attempt to stimulate the economy and create jobs. They have even voted against unemployment compensation for the unemployed.

We the People would welcome an invasion from Europe to save us from the radical extremist so-called republicans that are Fascists-totalitarian, corrupt, and incompetent.



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