Web Letters | The Nation

Web Letter

This is a simplistic and ill-advised editorial. The impact on the USD and credit-worthiness is a real and substantial side effect to more deficit spending. And the federal government has a very poor history in terms of future ability to overcome incurred debt. So to paint this issue in typical partisan terms, as done here, is both intellectually simple and anathema to a reasoned debate.

Stewart Frankel

New York, NY

Oct 30 2009 - 11:10am

Web Letter

William Greider left out a crucial component of the deficit debate. Implementing further radical deficit spending to jump-start our economy does have some macroeconomic credibility, but only if the debt can be financed without restricting our ability to borrow and bringing harm to the USD. At some point, our creditors (namely China) will lose confidence that we can actually repay our monstrous debt. When this happens, creditors will require higher bond yields or will avoid US debt altogether. At that point it will be too late to backtrack. The USD will be extremely devalued and our once unprecedented economic power will evaporate.

Mathew Schmidt, PhD

Santa Barbara, CA

Oct 30 2009 - 9:24am

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