Debt Is A Political Issue

Paul Krugman

Earlier this week I gave a talk about the state of the crisis at Princeton’s Plasma Physics Lab, and one audience member asked a really good question: if the problem is that interest rates are at the zero lower bound, why should we worry about government borrowing? After all, doesn’t that mean that the government can borrow at a zero rate?

... So what’s the problem? Confidence.
... So what determines confidence? It has a lot to do with the perceived responsibility of the political elite.

Read full opinion here:
http://krugman.blogs.nytimes.com/2010/03/05/debt-is-a-political-issue/?src=tptw