Politicians squabble while national debt soars

While Democrats and Republicans refuse to compromise the national debt has disintegrated from looking at $6 trillion in federal black ink by 2015 to $6 trillion in debt. That’s a $12 trillion financial sea change while politicians yap at each other. 

And it’s growing at the rate of $1 trillion a year.

David Wessel, economics editor of The Wall Street Journal and author of a new book, “Red Ink: Inside the High-Stakes Politics of the Federal Budget,” blames an economy worse than anyone expected, the housing bubble bursting, tax cuts and spending increases.

Health care went from less than 10% of the federal budget in 1960 to 25% today and 33% a decade from now unless significant changes are made. 

The defense budget is $700 billion, more than the next 17 budgets combined in other countries.

About 63% of the money spent last year was for promises made by previous Congresses, which doesn't leave much maneuvering room for today's Congress. 

The United States still draws investors because others – the Japanese and the Europeans – are even worse off. 

About half of America’s debt is held by foreign investors, including 25% by the Chinese.

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