Ellen Brown: Debt doesn't Matter.

[carsonscorner]

On my radio show, I interviewed Ellen Brown, author of The Web of Debt. The interview starts at around the 30 minute mark.

http://bobcarson13.podomatic.com/player/web/2011-04-18T20_14_05-07_00

Ellen notes that we haven't paid off our debt since 1835, and our debt is our money supply, so therefore, as long as we have a GDP and sustainable interest rates, we will be fine.

Ellen also explains fractional reserve banking. Ellen is brilliant!

On this show, I also go over the 9 thing the rich don't want you to know about taxes, as put forth by David Cay Johnston.

[PoliticAverse]

1. Unfortunately the more debt you have the lower interest rates have to be to be 'sustainable'... n/t

[carsonscorner]

12. Great Discussion.

This makes for a very interesting discussion.

[Delphinus]

2. Thanks - will check on this.

Welcome to DU.

[Progress_LocalGlobal]

3. agreed completely

sustainability is the key. I really wish people would understand such a simple economic principle. The right wingers want to just get rid of spending, which is a dumb, short term solution that will only result in the spending being replaced when these idiots eventually get voted out of office. Its pretty bad the apocalyptic attitudes from both the psycho right and some of the posters on the DU.

Life is good people.

OBAMA2012

[The2ndWheel]

4. Debt always matters

Just because the medium of that debt is now basically our imagination, doesn't mean that it doesn't exist. It will result in problems within physical reality, as that's where our imagination resides.

[JoePhilly]

5. Debt only matters when there is a Dem in the White House.

[orwell]

6. Debt and government deficits...

...are how money is created in a fiat money system.

She is absolutely right about this.

We are all freaking out over journal entries on some spreadsheet at the Fed.

We aren't on a gold standard anymore people...

[robcon]

7. Ask Portugal, Greece and Ireland if debt matters.

I think it matters when it overwhelms the ability to pay... when no one will lend any more money.

We're not there yet, but we're almost there with the Chinese and Japanese.

[uponit7771]

11. THEY Dont have the means like the us to pay down thier debts

[Bandit]

8. Just imagine what we as a country could do without that Debt.....

Hell just imagine what we could do with just the interest we are paying every year on our Debt....Clinton put us on a direct path to being Debt Free and then came Bush*/Cheney with their Logic that Debt doesn't matter.......Debt matters a Lot.....

[IndyPragmatist]

9. I agree with you, I dont understand how she can claim it doesnt matter

While it may not be the dire situation that many on the right are claiming it to be, it is still a serious issue that we need to address.

Our debt makes it more and more difficult to run a balanced budget, thus, compiling even more debt, which makes it even more difficult to run a balanced budget, adding more debt....and so on. Having a national debt is fine, but constantly adding to it is a terrible idea and absolutely matters.

Our debt caused our credit rating to drop just the other day. While we are still fine at our current rating, if it continues to drop, it will force us to raise the interest rates on government bonds to cover our deficits. Which will add to the debt, causing our rating to potentially drop again, forcing us to raise interest rates.


I am not able to listen to the interview, so I don't know her exact argument. However, if she is truly claiming that our debt doesn't matter, I completely disagree with her. In the fiscal year 2011, we will pay $215,581,249,409.94 in interest alone. Think of what that money could be used on and tell me that the debt doesn't matter.

[crickets]

10. +1

In the fiscal year 2011, we will pay $215,581,249,409.94 in interest alone. Think of what that money could be used on and tell me that the debt doesn't matter.

Nail->Head.