Crises Creating Crises

(Via Insty) Two trillion in new debt. Trillion with a T and that rhymes with P and that stands for piss-poor planning.

Yes, there’s a question of who is going to soak up that much new debt — “money” created by Congress out of thin air. Assuming that other people with actual already-created money want to exchange it for our new stuff with the ink still wet.

There’s another question, however. Folks somewhere will buy up our debt, if we price it right. And that will drive up interest rates during a credit crunch. Worse yet, it will crowd investment dollars out of the private economy, reducing our future productivity, current employment, and prolong the recession. So the other question is: What the hell are we thinking?