http://washingtonindependent.disqus.com/enWed, 20 Aug 2008 03:28:33 -0000http://www.washingtonindependent.com.php5-9.websitetestlink.com/60/oonew-documentary-a-testimony-to-washington-prodigality#comment-1791278The size and composition of federal debt is probably less important than the size and distribution of state/local (municipal) as well as the application, size, and structure of private, especially corporate, debt.<br><br><br><br>The main problem with composition of the federal debt is that part of it is off-the-books indemnities driving the municipal and corporate debt. This is both a hidden and compounding problem.<br><br><br><br>Otherwise, foreign holdings of Treasury paper are not a problem, so long as the world is happy holding our paper. Meanwhile, our national debt and deficits are necessary "fixes" -- in the sense of a junky-fix -- to stabilizing employment and growth.<br><br><br><br>The political problem is our <i>Predator State</i>: That is manifest more as a pattern than an aggregate: It is borrowing and spending that is more than just "out of control", it is "looting".jrbehrmanWed, 20 Aug 2008 03:28:33 -0000