Attention All Blind Loyalists - Please Read About Our Nation's Debt Based Future!!!

The most disappointing display in this video comes at the 10:20 mark. It shows the interview with Senator Kent Conrad, chair of the Finance Committee. I liked Conrad because he was the voice that was attacking the Republican spending plans when they had control of the congress. Today Conrad has SOLD OUT.


The frustrating thing about Conrad is that HE KNOWS BETTER based on his previous statements and spirited fight against big time deficit spending. Today he is largely towing the party line.

Higher taxes, or reduced federal benefits and services -- or a combination of both -- may be the inevitable consequences.

Interest payments on the debt alone cost $452 billion last year -- the largest federal spending category after Medicare-Medicaid, Social Security and defense. It's quickly crowding out all other government spending. And the Treasury is finding it harder to find new lenders.

The debt is largely financed by the sale of Treasury bonds and bills. Even today, amid global economic turmoil, those still are seen as one of the world's safest investments.

That's one of the rare upsides of U.S. government borrowing.

Treasury securities are suitable for individual investors and popular with other countries, especially China, Japan and the Persian Gulf oil exporters, the three top foreign holders of U.S. debt.

But as the U.S. spends trillions to stabilize the recession-wracked economy, helping to force down the value of the dollar, the securities become less attractive as investments. Some major foreign lenders are already paring back on their purchases of U.S. bonds and other securities.

And if major holders of U.S. debt were to flee, it would send shock waves through the global economy -- and sharply force up U.S. interest rates.

As time goes by, demographics suggest things will get worse before they get better, even after the recession ends, as more baby boomers retire and begin collecting Social Security and Medicare benefits.

While the president remains personally popular, polls show there is rising public concern over his handling of the economy and the government's mushrooming debt -- and what it might mean for future generations.