This is a good article from Steve Saville at The Speculative Investor. While it largely repeats Dr. Keith Weiner’s message, it is always useful to read something written from a slightly different perspective.
“Most warnings about large increases in government indebtedness revolve around future repayment obligations. For example, there is the concern that greatly increasing the government debt in the present will necessitate much higher taxes in the future. For another example, there is the concern that if the debt load is cumbersome at a time of very low interest rates, then as interest rates rise the interest expense will come to dominate the budget and lead to an upward debt spiral as more money is borrowed to pay the interest on earlier debt. Although these concerns are valid they miss two critical points, including the main problem with government borrowing.”
Some of Mr Saville’s lines make great quotes. Particularly this one…
“the government pretends to care about debt repayment and bond investors pretend to believe them”.