(Just for perspective, the Bush Administration added $3.9 trillion to the national debt, during the course of their tenure.)

But how much debt is too much?

Let me respond with the conventional view (which I freely admit is open to criticism). When the amount of Federal debt is too large, creditors (the holders of treasury bonds) will start demanding higher interest rates. Right now, the interest rate on federal debt is essentially zero. So there’s a lot of room to borrow a lot of money, before our creditors start showing concern (in the form of higher rates) about our ability to pay.

Of course, there isn’t “one” interest rate on Treasuries. There are short term rates and long term rates. You don’t want to finance the national debt with short-term borrowing. That’s like taking out an ARM on a very expensive house (and we all know how well that worked out).

Short term rates are at zero. The number to watch is the spread between long term and short term treasuries. That, too, is at historical lows. Which basically says that we can go ahead and borrow a lot of money at very favourable rates, right now.

Now, I’m not saying that’s a desirable thing to do. But if you believe Krugman, the alternative is even less desirable.

I dunno. The economists in the Obama Administration seem to think that $800 billion (or so) is big enough.

I hope they’re right …

Try again.

Cutting $40 billion for state budget stabilization seems particularly stupid.

This graph (whatever you may think of the source) quite effectively drives home the severity of the situation.

I apprciate your kind words – it’s not that I thought you were accusing me of racism, but you’re still missing the point: the Republican party is not made up entirely of dittoheads…it has room for people like me in it, too.

The loudmouths are often mistaken for the voice of the party by dint of the sheer volume of their shouting…

Post 20: Mark, I would never accuse you of being a racist. I think that you are a fair-minded soul, and I’ve never seen anything in your blog which remotely smacks of racism. My only point is this: if you delete all of those who follow people like Limbaugh and Sean Hannity — who are, if nothing else, angry white men — from the Republican party, what do you have left?