Thursday, September 18, 2008

Credit Crisis/National Debt

As I watch CNBC report on the Fed's efforts to quadruple the amount of US$ available for foreign banks to lend to their borrowers hungry for dollars, I am reminded that the real crisis we face is not the price of securities but the credit crisis resulting in very large part from the sub-prime lending practices that proliferated during the past 8 years of Republican-controlled government. During these same 8 years, the Federal Budget has gone from having a surplus to having record deficits.  The National Debt now stands at something over $9 trillion ($9,000,000,000,000).

This raises a question: to what extent is the Federal Government's voracious appetite for cash related to the current credit crisis?  I'm no economist, but I can't help believe that there must be a connection.  And if there is, then shouldn't this be part of the message that the Obama/Biden campaign needs to be communicating to the American people?

My 2 cents--cash on the barrel.

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