Pass it (the debt) forward

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U.S. National Debt

Anyone not worrying about the debt that we're piling on should read about Greece and its financial problems that are weighing down the euro. This New York Times story has a familiar ring to Chicagoans who had watched as Mayor Richard M. Daley has in effect sold and then spent future revenues on the Chicago Skyway and then the parking meters to meet current expenses. In like manner, Wall St. and other nations helped Greece with upfront money by giving away future revenues, thusly:

In dozens of deals across the Continent, banks provided cash upfront in
return for government payments in the future, with those liabilities
then left off the books. Greece, for example, traded away the rights to
airport fees and lottery proceeds in years to come.

Our day of reckoning approaches.

Comments

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  • The Daley analogy fits. However, when government money market funds returns are negative, somebody must be willing to invest in U.S. Treasury debts, despite the negligible rate of interest paid.

    Now, if the Chinese decide to pull their stake, then Katie bar the door.

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    Chicago Tribune contributing op-ed columnist and author of forthcoming historical novel, "Madness: The War of 1812." Reporter, editor and columnist for Chicago Sun-Times and Chicago Daily News. Freelance writer and editor.

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