Speaking from experience I would say that many Americans have too little understanding of the power of compounding interest. I know I paid too little attention to it, sometimes to my cost. It is your best friend in long term investments where $10,000 invested well in 1980 is worth huge money today. It is your worst enemy when it is working against you as my credit card debt did.
As a nation Denninger argues that the non-partisan CBO is sounding the warning that medical costs, due in part, but not wholly, to “health care reform” are going through the rough at a horrible compounding.
We need to have a serious discussion about this and no one on either side of the aisle seems to want to cough twice and start the talk. Small wonder, if you read Karl’s article. This is in line BTW, with predictions that the sheer cost of the Obama Administration will start to skyrocket in 2013. For all our sakes I hope he is out of office. He might want to take a careful look at extradition treaties signed by whichever country he goes to.