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Why do you believe the out-of-control national debt was largely ignored during the recent election?

Bob Wiedemer

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Video Transcript

Bob Wiedemer: As an Economist, the big insult to me is the one thing that didn't come up in this election was talk about debt, deficit reduction or anything. It just dropped off the map and that's unfortunate to me. So, it wasn't... I wasn't so much insulted by what was said, it was by what wasn't. We need to talk about that, because we are hitting what is going to be a $20 trillion deficit and from what I can tell, it's going to go up even... you know, continue to go up. Even faster than it has. Keeping in mind, the deficit this year under President Obama has gone up almost 50 percent. I see that growing very quickly over the next few years, as well. Lots of talk about infrastructure spending, military spending, however, you know... I think there's no question that it's going to go up. Even if you don't increase spending, it's going up any way. Now that's not only a problem from a longer term stand point, but it also puts a lot of pressure to print more money.

Part of the reason that we can borrow money... we meaning the U.S. government can borrow money when it's debt-to-revenue ratio, debt-to-revenue not GDP, debt-to-revenue is 6:1, that means we've got six times as much debt as revenue. I always ask people, "Would you lend to a company or person whose got six times more debt than they have total income?" Come on. The only reason the U.S. government can do that is because it can print money and it will be forced, ultimately, to print money to help support that debt. I also think, it will help support the stock market and ultimately that's going to be inflationary. I think that's also going to start to erode people's confidence in the Fed and in the economy. It's not a political decision. It's a force. As the debt goes up with increasing deficits, you're going to be forced to print more money and that's what we've seen under Republican administrations or Democratic. It's simply the way it is. That's going to be inflationary and that's the bottom line.