The US Has Fallen Off the Debt Cliff
A scene repeats in every episode of The Road Runner, in which Coyote finds himself suspended in midair, fighting gravity, seemingly because he fails to recognise that the
fall is inevitable.
Today the US federal government finds itself in the same predicament – over the fiscal debt cliff – but somehow convincing itself that all is OK. This cliff occurs when the
government deficit grows at an unrepairable rate. Essentially, the debt hits a negative feedback loop: each new dollar borrowed is paid back by borrowing ever more.
The short essay linked below explains why this debt spiral happened and why it will not be fixed.
