The debts are not being satisfied.
Companies do not have the luxury of printing their own money or using their own debt to repurchase more of their own debt as we are seeing them do with troubled assets to purchase T-bills.
We've all heard of people using one credit card to pay the bill on another, but this goes far beyond that. They are using a credit card that has no credit remaining (troubled assets that they are deliberately overvalued) to pay for their other credit card.
"It has more to do with which party has control of Congress than the White House."
How do you explain the Republicans racking up huge debt, during an upturn no less, during the key period when they controlled the Presidency, Senate and House during past decade?
And how do you explain the debt to GDP ratio declining even under President Carter when the Democrats controlled Congress?
The theory doesn't seem to fit the facts.
you also seem to be light on facts.
But what matters now is how Obama's economic policies are
working just as he planned. But little by little people are realizing
that it's not what they expected. It's going to be a robust fall election,
and the only thing that will be robust.
I agree. The right wing is engaging in partisan hyperbole in describing the US government's admittedly weakened condition due to the fact that Republicans did not save for a rainy day during the last decade like the Democrats did the decade before.
It is not helpful to America to have Republicans run around claiming the sky is falling. And it is confusing to me that at the same time the Republicans are calling for the need to restore fiscal stability to our government they are calling for the continuation of their unfunded tax cuts that caused our fiscal instability.
Republicans promise that if elected they will impose spending cuts to offset the lack of revenue, but when pressed they never give a clear answer as to how. In fact, the Republican track record since Nixon has been to grow government spending at the same rate as the Democrats they so decry.
The last time we had divided government under a Democratic President during the 1990s the way our government achieved fiscal stability was not to decrease spending. To sum it up, the Republicans are no better at controlling spending than the Democrats, and a lot less responsible with our collective credit card.