Consequentially, Mr. Greenspan has been relatively quiet about the impending U.S. crisis, until yesterday. Reserve continues to monitor debt levels and credit conditions more generally. Thus we are pleased to see Mr. Greenspan talk about using budget surpluses to pay down the national debt. The federal tax rate is already on the low side when compared to the historical tax rates of this country. School buildings and other infrastructure continue to crumble as a consequence of prior reductions.
Military spending continues to be incredibly high.
As James Davidson pointed out in the Great Reckoning, it is as if we never stopped fighting a world war in 1945. Many have talked against a large federal debt because of the burden it places on our children. We have just seen what large levels of debt have done to Japan, Korea, and Brazil. It causes implosions of economies. It is the ticking clock of the rising national debt that is the greatest enemy to this country's prosperity.