No. of Recommendations: 4
First, my apology for being so late to this thread.

Back to the OP. First, I heard the national debt is killing us in the 1970s. That was almost 50 years ago, and nothing bad happened. Second, the treasury bill is considered to be risk free in all the economic models. If the debt was such a problem, it would not be considered risk free.

Being of an advanced age, I too remember the 70's, and I have no recall of debt being of much concern in the 70's (IIRC, a few percent of the budget went to pay the interest on the national debt). I'm not saying there was no concern - my parents, who went through the Great Depression and fought in WW2, saw the debt through a different lens - namely that the immediate post-war debt was a larger percent of GDP that it is today. Still, they were encouraged that the impact of the debt on the budget steadily decreased through their lifetime.

John Mauldin readers should be somewhat familiar with a 2011 book by Carmen Reinhart and Kenneth Rogoff entitled 'This Time is Different: Eight Centuries of Financial Folly'. Rather than rely on anecdotal stories or talking head opinions, my recommendation would be to examine the data assembled in this scholarly work and draw your own conclusions.

<soapbox> Hint: some of you may join me in worrying about something over which we have no control. And I'm too old to pick up a pitchfork and demand that government change. But I do vote. </soapbox>

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