But Really, America is Not Broke
Recently, Michael Moore made a speech to protestors in Wisconsin which was published as an editorial in the Huffington Post under the title "America is Not Broke." The idea that America is not, in fact, broke has come as a surprise to many. Don't we have a giant federal budget deficit? Aren't state governments (including our own here in California) scrambling to deal with massive shortfalls? What about high unemployment? And on and on. The geniuses at Reason.tv recently decided to tap into such misunderstandings in order to make the following highly misleading video: The breathtakingly ugly dude in this video either has no understanding of how finance works, or he is being deliberately obtuse in order to keep his viewers from understanding the financial condition of the U.S. The most obvious way to look at whether the US government is broke is to look at interest rates on federal government bonds. This is the same as looking at how much the government has to pay t...