Greenspan and borrowing
Alan Greenspan is retiring after almost 20 years of what has been considered by most a successful run as head of the Federal Reserve Bank. The Federal Reserve Bank has a lot of powers to try to manage the economy to keep it healthy. On the whole, Greenspan kept the recessions short and the growth periods long, which is all good.
But there are a few areas where he seems to have not done as well. Particularly, his low interest rate policy has made it so that we currently have the lowest rate of personal savings and the highest rate of government debt.
I found a web site that tracks the U.S. national debt. The current national debt of the US. Government is over $8 trillion dollars, or over $27,500 per each U.S. citizen. That is a lot of debt.
Just paying the interest on the debt will cost us over $320 billion dollars, or about $1100 per U.S. Citizen. This is almost one-and-a-half times as much as we are paying for the war on Iraq!
For those few people (if there is anyone) who have been reading my posts for a while, you will know that I have posted on the US Budget Deficit as a problem before, and probably will again. I thought we had learned the lessons when Reaganomics did not pan out like they had hoped, yet now we are on the second term of another President who is trying the same thing (but without the push for a smaller government that Reagan had).