Not to worry about national debt?

According to Nov. 10th Time magazine expert, national debt is not to worry. Interest is only 3% of Gross Domestic Product, and it’s been that high before.

On Nov 12th, at 9:20am the debt was stood at $13.7 trillion while Gross Domestic Product was at $14.6 trillion. Put in terms of your family budget, Time’s man says that if your gross income for the year is $80,000 you needn’t worry over household, un-secured debt that is $74,400. You don’t worry, and I know a bridge in Brooklyn I’d like to sell you.

You also needn’t worry, that one fifth or $14,880 of your $80,000 income goes to pay interest on your un-secured debt. Why not worry? Because, says Time’s expert, you had just as bad imbalance in the past few years and the bear didn’t eat you then.

Common sense says this family must get rid of debts as soon as possible to keep from being eaten up by the interest. Time would have us believe it doesn’t matter because the bear didn’t eat us last year. Besides the U.S. can print its own money, as Mr. Bernanke did just this week to the tune of $800million, or was it billion? Pretty soon we’re talking real money.

So if one of your sons can print counterfeit bills and have other family member accept them for legal tender . . . problem solved? Not quite, because your creditors will not accept the bills in payment of your debts. Even if you are a huge family (the U.S .) and have millions of members who will accept the newly minted cash, as you print more and more and your creditors see it’s worth less and less, they will demand security, deny you credit and/or require payment in some more real value form. If they deny credit, i.e. refuse to buy U.S. bonds, then the government will be suddenly so deeply underwater that tinkering with military and entitlement items won’t begin to solve the problem.

Why don’t we do anything about this debt problem? Apparently because Obama, and Congress listen to blather such as this from Time’s expert.