The U.S. is bankrupt but is shipping another $40 billion to a corrupt state that is of far more strategic importance to Russia and which is handily losing to the bear. From David Stockman at antiwar.com:
It’s always useful to visit the museum in order to offset the recency bias that distorts perceptions of current realities.
In the great scheme of things, the picture below is admittedly not that ancient – from just 42 years ago. But it is nevertheless a museum piece because it pertains to a matter that has long since faded from the scene. Namely, the public debt and in this instance the day when your editor was compelled to warn the Gipper that the Federal debt was about to cross the dreaded one trillion dollar mark.
Back then, that prospect gave one and all the fiscal heebie-jeebies. Massive public debt was viewed as an immoral imposition on future generations and an economic scourge on the present. That’s because when properly financed in the bond pits it drove up interest rates, thereby crowding-out household and business borrowers and economic growth and rising prosperity on main street.