Times’ Columnist Asks: What’s Behind Deficit Hysteria? | NewsReal Blog

Times’ Columnist Asks: What’s Behind Deficit Hysteria? | NewsReal Blog: "New York Times op-ed columnist Paul Krugman does not believe that tripling the federal deficit in one year’s time is anything to be concerned about. He compares what he calls “fiscal scare tactics” to the “fear-mongering on weapons of mass destruction.”

Mr. Krugman needs some lessons in basic economics and the law of unintended consequences. The rapidly growing deficits are hurting our country right now.

First off, massive federal debt – with annual deficits projected of over a trillion dollars as far as the eye can see – crowds out private firms that are seeking credit. This cuts off investments that could create many new jobs – real jobs, not the phony ones being attributed to Obama’s stimulus plan.

The run-away deficit is making us more beholden to the biggest buyer of our debt, China, which is busy cutting its imports and expanding its exports. China’s economic leverage – and hence its political leverage – is increasing at an alarming rate and in linear proportion to their control of much of our debt."