There was an interesting article over at remnantnewspaper.com . It deals with the recent “debt crisis”, and says that, basically, the whole crisis that is being dealt with is “wrong-headed”. While the US debts are high, much of it is owned between one government department to another (such as the feds borrowing money from Social Security), and also includes the federal government owing money to the federel reserve. In other words, the federal reserve “printed” money and “lent” it to the federal government. Only about 31% of the federal debt is owed overseas.
It claims that the real issue is jobs, not debt, and that the real deficit that has to be dealt with is the trade deficit, which no one is dealing with.
An extract of the article is below, along with the link. This is definitely worth a read. It is not kind to either the Democrats of the Republicans.
Now, to add my two cents – if the federal deficit is not our main problem, then why all the fuss and attention over it? Maybe because it causes people to watch the news media, and thus lines the pockets of news execs with advertising revenue?
That is one explanation, much like the whole “Casey Anthony” trial which the media concentrated on, or the oil spill that was, in reality, quite small (in comparison with say, the amount of water the Mississippi dumps into the Gulf ever minute or so). Anything to keep us glued to the television and news websites as much as possible.
I also suspect distraction – the ever going on magic trick where we pay attention to whatever the media tells us to, and not to the things that really matter.
From the article:
But let me suggest that the debate is wrong-headed and deals with the wrong issues, issues that have little effect on our real problems. What really bothers people when they get out of bed in the morning is not the federal debt, but the uncertainty over their jobs, presuming they have them. But 15 million people don’t have jobs, and millions more are underemployed, with part-time work or work below their skill levels. And even among the employed, there is great fear, since their bosses have demonstrated to them, over and over again, that they are disposable commodities, to be instantly cast off if the Chinese workers make a better offer, or if the shareholders demand a higher return. Over and over again, they are reminded that they are but bit players in the economy, cogs in a vast socio-economic machine over which they have little control and no voice. And they see clearly, far more clearly than their leaders, that there is little likelihood that the economy can provide the missing jobs or return to them their lost security.