I Guess It Depends On What Is Is
Now I have to wonder about the accuracy of this,
On the US budget, Clinton warned that the federal deficit may be coming untenable, driven by foreign wars, the post-hurricane recovery programme and tax cuts that benefitted just the richest one percent of the US population, himself included.
“What Americans need to understand is that … every single day of the year, our government goes into the market and borrows money from other countries to finance Iraq,
Afghanistan, Katrina, and our tax cuts,” he said.
“We have never done this before. Never in the history of our republic have we ever financed a conflict, military conflict, by borrowing money from somewhere else.”–emphasis added
During World War II, the U.S. debt went to over 100% of GDP. According the Bureau of Economic Analysis GDP in 1945 was $223.1 billion. The national debt at that time was $258.7 billion. That is, the U.S. public debt was just under 116% of GDP. Compare this to today when the public debt is about 64.7% of GDP. Now don’t get me wrong the run up in debt and the future with endless deficits doesn’t look good, but Clinton is…well it looks like he is making crap up. I suppose it is possible that all the debt incurred during WWII was sold only to the U.S. public. Frankly I doubt it since U.S. debt has taken two forms. There are marketable and non-marketable bonds. Non-marketable bonds are sold under pretty strict conditions, but the marketable bonds are sold without any conditions. So it is likely that countries like England, Canada, and others, and the individuals in those countries were buying U.S. bonds just like they do now.
There is reason to point out that the deficits are problematic, and I think Bush needs to take an axe to the budget (although I doubt he has the ability or the courage to do it), but this kind of…well lie just goes to show that Clinton sure can lie really well. I bet he didn’t blink or stumble over that one at all. Reagan might have been the Great Communicator, but Clinton is the Great Fabricator.