We picked up some operating money at under 3%, that is cheap by most any standard in any country in any period of recorded human history. After inflation, cost of funds is roughly zero. That is cheap Pal.
Cash one of the trusts loans to the bank is worth .21% per year. Great wealth transfer from the savers getting zero return to the financial class loaning it back to the Treasury at 1.6% for 10 years.
This issue is not a party issue. Both parties voted to spend all the money. Why? The people demanded it of them. Rothschild, or pick a economic historian, they all foretold this day would come. This is a cultural problem, a human problem. The choice, and it is a choice by ALL involved, is to spend for today rather than save for tomorrow. It doesn't matter if it is the super wealthy liberals in America, or the Senator from Florida protecting the sugar price, a conservative Defense hawk forcing new fighter planes into the budget. Look in the mirror, we all are guilty. Or gasp, the Farm Lobby crushing any possible means testing of the crop insurance subsidies for the wealthiest American's.
You can spend it now, or spend it later. If you borrow to spend tomorrow's wealth today, well, that is problematic because it has to be repaid someday. Either by the borrower, or the lender. Most will be repaid by the lender it seems.
Debt simplies eliminates freedom of choice. Once nation states get into the act, the same rules apply, normally death and destruction follow in its wake.
Didn't mean to write a thread-killer post. I am not that pessimistic actually. Any country can just write off the debt and move on. Many have in the last 100 years. Just have to hope not every country does it at the same time. Since all are followng the same monetary policy at the same time. That creates the systemic risk.
