Hennessy's View

Domine, non sum dignus

Low Interest Rates Hid True Cost of Increasing Debt

House mortgage-type instrument suggested as means to pay off national debt Guest Post By Lee A. Presser Interest rates have been held artificially low by the Federal Reserve since 2008. This has had the effect of hiding the true cost of increasing debt. As interest rates rise back toward 4%, the U.S. Treasury will have less money to spend on discretionary governmental functions. The FY 2015 budget is approximately $3,900,000,000,000.00. Another way to look at that number is about $12,187. Read more →

At Last, Obama’s Ready to Borrow More Money from China

The headline on July 15 was knee-slapping funny: Obama says he’s “ready to move**” on debt ceiling. ** Really? The man who dug a deeper debt hole in two years than anyone else did in 8—or 15—is willing to borrow more? Say it ain’t so. For those who believe Obama’s some sort of deficit hawk, let’s take a quick stroll down memory. Obama wanted to increase the debt limit by $2. Read more →

Simply Staggering

The federal budget deficit in the month of February 2011 exceeds the deficit for all of 2007 by 40 percent. Simply staggering. Yet Senate Democrats refuse to cut more than a paltry $6 billion. They refuse because they seem bent on collapsing the American system – the economy, the government, and the people themselves. But at least the Obama administration stands by with its arms folded as gasoline prices skyrocket at the their fastest pace in history. Read more →

2/3 Think Worst Is Yet to Come for USA

The Wall Street Journal headline is grim: Grim Voter Mood Turns Grimmer Underpinning the gloom: Nearly two-thirds of Americans believe the economy has yet to hit bottom, a sharply higher percentage than the 53% who felt that way in January. Wow. I think thebarrage of terrible economic news this week has people realizing that you can’t borrow your way out of a debt problem. So far this fiscal year, the US has paid more in interest on its rapidly rising debt than it’s taken in from all corporate taxes. Read more →

The Evil of Debt

The debtor is a slave to his lender. Americans hold hundreds of billions of dollars in credit card debt alone. To this add automobiles, student loans, mortgages, medical, and myriad personal loans and you arrive at the staggering figure of$2.55 trillion with a ’t’. This massive debt–encouraged and backed by the US Government–makes us miserable. Seriously. Are you happy? If the debtor is slave to his lender, then the US Government is slave to China and Japan. Read more →