If Michael Mann's infamous hockey stick graph should be taken seriously as evidence that human activity is causing global climate change that must be stopped, or else it will trigger positive feedback effects that will result in a catastrophe that will ruin the lives of millions of people, what then are we to make of the following chart showing how the U.S. federal government is running up its own debt for the sake of loaning out money to college students?
Here, we find that the federal government has sharply increased the amount of money it borrows for the sake of loaning it right back out to college students since 2008. Beginning in 2009, the net increase in those borrowings account for 2.9% of the entire increase in the U.S. national debt observed since 2008. That amount is above and beyond the amount directly added to the nation's total public debt outstanding by the federal government's annual budget deficits.
In this case, the disaster that would directly affect the lives of millions of people means being forced at the direction of government bureaucrats into a dramatically lower standard of living for the sake of being able to make the payments on their student loans to the U.S. federal government, without any real hope of being able to discharge that debt through bankruptcy.
That, in turn, has the real potential to indirectly hurt millions of other people, because student loan payments are rising at the rapid pace supported by the government-subsidized cost of tuition, even though college graduates are entering into jobs that pay far below what is required to both live well and to support their super-sized student loan debt.
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Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for July 23rd, 2014 | John Ransom
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