So, when I posted this, it looked as if my column, "The U.S. Will Never Pay Off Its Debt" would not be published.  I had hoped that by posting it here, you guys would ferret out its flaws for me.  But, instead, it was well received, which made me think, "darn it, this should be published."  The Daily now seems to agree.

But, they'd also like me not to scoop my own column, in the event that we run it next week.  So, I'm taking the draft down, but leaving the very good thread intact.  Thank you all for the help on this.  I thought I was losing my mind.

Investor Jeremy Grantham, well known for years and around the world (he manages more than $100 billion) has recently come around to the idea that some mortgage debt forgiveness might be necessary.  Given that Grantham invests in bonds from time to time, this is amazing stuff.  Bond investors hate the idea of debt forgiveness.  They usually prefer "debt repayment at all costs, or I get to take your stuff."  I recommend reading Grantham's latest letter to clients, which you can find here, or perhaps my

The media is so allergic to common sense these days that nobody has reported on the obvious implications of the Republican complaint that nearly half of Americans had no income tax liability in 2010.  Republicans want to raise taxes on the poor.  This is the subject of my column in The Daily this week.

My column for The Daily today is about the S&P downgrade and its effects but, beyond that, it's about an undercurrent of belief in the U.S. that we should be collectively punished for the sins of borrowing and profligate spending.

There's actually a whole school of "hard money" economics adherents, known as the "Austrian School," that believes this very explicitly.  They see stimulus packages, quantitative easing, Keynesian money printing and other Federal Reserve tactics as ways of avoiding necessary economic pain.  Ron and Rand Paul are in this camp.  They believe that you deal with high unemployment or stagnant wages or even inflation by... living with it.  These are the necessary results of speculative bubbles that you never should have let happen in the first place and if you'd just let the supply of gold be the disciplining factor in economic life, you wouldn't have had these problems in the first place.  I tend to believe that if we did that we'd still be living in 15th century conditions, but that's another story.