Debt seems to have taken a front and center role in politics (again). While reading this very interesting article on gold, I came upon this little gem of a factoid:
"If you’re worried about massive deficits, recall that our country was founded with debt, debt that was ultimately paid back."
Gold became irrelevant as a currency when the gold standard was eliminated. Currency now is backed up not by precious metals, but by goodwill and military might. Tanks are far better at supporting an economy than gold these days.
Being dismissive of our deficits is dangerous. When the country was founded, there were many that were opposed to the assumption of debt. The choices that were made at the founding have gotten us to where we are today. 200 years ago we took on debt because we knew that we had an entire continent of riches to exploit. Where's the opportunity now?
Gold became irrelevant as a currency when the gold standard was eliminated. Currency now is backed up not by precious metals, but by goodwill and military might. Tanks are far better at supporting an economy than gold these days.
ReplyDeleteBeing dismissive of our deficits is dangerous. When the country was founded, there were many that were opposed to the assumption of debt. The choices that were made at the founding have gotten us to where we are today. 200 years ago we took on debt because we knew that we had an entire continent of riches to exploit. Where's the opportunity now?