On Sun, 19 Jul 2009 11:46:19 -0500, Gray Ghost wrote:

Nope. It is you who have produced a lie. The budget for any given year
can be balanced (or in reasonable deficit or surplus) and the national
debt can rise or fall independently.

When securities mature they can be redeemed by new debt offerings or they
can be redeemed by created money. Additionally, if the Fed feels the
need to choke off inflation then the fed will increase interest rates and
attract those who hold money to trade the money for new bonds. So if
government spending will have induced too much inflation even though
taxation was taking more than the amount of spending out of the economy,
then the Fed and the Treasury are obliged to sell bonds so as to control
the inflation. Such sales will increase the debt even though there was a
balanced budget or a budget that was in surplus.

I don't think rightards that post here are so much lying as that they
simply have no understanding of how the actual system works. The people
that they (the rightarded who post here) are listening to are the real
liars.

--
"Those are my opinions and you can't have em" -- Bart Simpson

On Sun, 19 Jul 2009 13:43:34 -0500, Gray Ghost wrote:

That is normally OK, but I have seen some people that resist that simple
definition by claiming that borrowing is income. And others that claim
that intragovernment borrowing adds to some expanded definition of
national debt and current deficit. The intragovernment borrowing has
nothing to do with the current accounts. The ON BUDGET numbers ignore
the positive income flow from the SS system but do not subtract unfunded
intragovernment future liabilities and shouldn't subtract such
liabilities.

--
"Those are my opinions and you can't have em" -- Bart Simpson