Re: “Trump’s ‘Golden Dome’ Missile Shield Expected To Cost $500 Billion”

Robert Carnegie wrote:

I think a point to keep a grasp on is that
government debt is a liability, one that
when created, doesn't go away by itself.
It sits there and costs you money each year.
 Deficit is extra debt this year added onto
last year's debt.

It really should be.  And often is, to a good approximation.
But given the tricks of accountancy, it's surprising how often
it isn't.
At any rate, in my earlier post I intended to make a direct
comparison, deficit to deficit as a fraction of GNP, but for
some reason typed "debt" by the Canadian number.
If our  debt was a mere 12.2% of GDP we'd have been in very
good shape indeed.
If it was 12.2% today, our boasting about our financial acumen
would sicken people within a 2000 mile radius.
  If you have a year without

any deficit, you still have the debt that
had already.  And you had to pay interest
on this debt.
 This description overlooks how economic
inflation makes debt smaller in practical
terms.  If the national debt is so many
dollars and is equivalent to a very large
hill of beans, then one year later, the
same value in dollars usually is equal to a
slightly smaller hill of beans.  So, inflation
makes debt go away.  But this isn't a very
good solution, either.  It's pretty much
The same as the other not-good solution.

In 1992 wise people were telling me that the only way to
reduce the debt was to inflate it away.  Well, inflation dropped,
but so did the debt.
When it comes to money, many think themselves wise.  Few are.
William Hyde