Interest on national debt sinking U.S.
The editorial published Aug. 20 points correctly to the danger of increases in the national debt.
However, putting on the brakes requires more thought than simply demanding reduced spending. With the national debt at $17 trillion, and interest on it at nearly 3 percent, the increase in the debt each year is $510 billion without any government spending at all. No defense, no subsidy to the oil industry, no roads and bridges, no welfare, no FBI, no unemployment insurance, only this subsidy to the banking industry and other “investors.”
This interest alone is responsible for a major part of the increase in the debt during the Obama administration and previous administrations. Every two years, the debt will increase by a trillion dollars. This is a scandal that is not even noticed. Instead, we blame our elected government for federal deficits. Congress and the executive branch should know better, but they don’t. They keep right on paying this subsidy while taxing the public to pay for it.
On Aug. 21, The Associated Press reported that a bank made a settlement of $17 billion for its part in the predatory lending scandal that caused the recent and present recession. The recession caused by unregulated banking has required increased spending for unemployment insurance, the WIC program and welfare. Which of these can be reduced? Do we really want more foreclosures, undernourished kids and possible starvation?
So, the renegade bankers caused a recession which increased the national debt that banks profit from in increased interest income. Maybe we can agree that banking is a loose cannon and the brakes should be applied to the banks, not the people who can’t get jobs because predatory banking caused a deep recession.