March 02, 2013
Bloomberg: US Can Borrow Infinite Amount Of Money Because It Has No Money To Pay It Back
Or something like that. I don't know what the hell he's talking about...
"We are spending money we don't have," Mr. Bloomberg explained. "It's not like your household. In your household, people are saying, 'Oh, you can't spend money you don't have.' That is true for your household because nobody is going to lend you an infinite amount of money. When it comes to the United States federal government, people do seem willing to lend us an infinite amount of money,... Our debt is so big and so many people own it that it's preposterous to think that they would stop selling us more. It's the old story: If you owe the bank $50,000, you got a problem. If you owe the bank $50 million, they got a problem. And that's a problem for the lenders. They can't stop lending us more money."
Debt - I do not think it means what Bloomberg thinks it means.
Isn't this how we got into this economic mess in the first place? People borrowing more money than they could afford to repay just because government regulations required banks to give them money?