Both major parties seem oblivious to the rapidly rising federal debt. We are now adding a trillion dollars every few months, but nobody wants to take this seriously.

The modern monetary theory crowd says that we don’t need to, but in this AIER article, Peter Earle and Thomas Savidge point out good reasons why we must.

A slice:

Escalating US debt levels alone should raise concerns. The growing ownership of those securities by major US depository institutions, investment banks, insurance companies, mutual funds, hedge funds, and other financial interests ratchets up the perniciousness of rising government indebtedness by creating a fertile ground for potential conflicts of interest and opportunities for undue influence. Foreign creditors may exert external pressure on government decisions and create risks to national security. But concentrated domestic constituencies may not only skew policies toward their parochial interests, but owing to national sympathies and regulatory ties may compromise or contractually maneuver in ways that facilitate the further accumulation of debt.

As with all government interventions, the accumulation of government debt has a host of unintended and undesirable consequences. Americans need to pay attention. We’re near the edge of a fiscal cliff.