Does anybody understand debt? Some – but not many. Today’s post is less of my normal extended prose and more of an outline. I’ve been invited to speak at some writing classes here at the college and this is intended to serve as my speaking notes.
Background: What have you heard?
Background Info on U.S. National Debt
Brazelton: The US CANNOT Go Broke
Numbers, Metaphors, and Stories
Get the terms right
Debt, Deficit, and tr/b/m-illions
$1,000,000,000,000
$1,000,000,000
$1,000,000
$1 trillion = 1 million times $1 million
Debt
Deficit
1984-present U.S. Federal Budget
Measuring the Debt
Counting Absolute Dollars of Debt Deceives. It's All Relative.
Three Bad Metaphors
Government is NOT a Household
Government is NOT like a Household!
Govt Debt is NOT a Burden on future generations
Private Debt is NOT like Government Debt
- Federal Reserve Breakdown of Household Debt
Foreigners Don’t Control
So…
A Sovereign Government Cannot “Go Broke”
Eurozone Countries Can “Go Broke”
Government Debt is Like Money that Pays Interest
But What About Inflation? Printing money?
Inflation involves real demand vs. real supply, not just $
Test on Debt: Interest Rates
Rates are historically low and staying low.
Are Gov. Deficits Necessary?
Yes, if you want to save money.
Forever? Yes.
Econproph: But What About National Debt-to-GDP Ratio? Not a Problem, Really
Are There Limits to Deficits?
Yes, but related to full employment and capacity.
In Practice, Nobody Understands Money.
Well they understand yesterday’s money, not modern money.
That’s why they don’t understand debt.
EconProph 
Bang on! WTG, Jim!!
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Will there be any recordings of this lecture? I’d love to hear it, but I’m unable to come down to LCC.
Unfortunately we did not record it.
However, I’m trying to make some arrangements to record some similar lectures in the future and post them.
jim
Bummer, that would have been entertaining.