We’ve waited far too long as a country to address the national debt, says fmr. Gov. Mitch Daniels

Summary

Former Indiana Governor Mitch Daniels warns that the national debt has reached a nearly insoluble point after years of bipartisan procrastination, with entitlements consuming over two-thirds of the budget. He dismisses the Treasury debt buyback as a panic measure that will not do much to keep long-term yields down. He expects policymakers to eventually inflate away part of the debt and continue financial repression, hurting savers and fixed-income holders.

• National debt tops $40 trillion with the deficit still elevated.
• Daniels calls the fiscal problem nearly insoluble and warns of a wrenching adjustment.
• Entitlement programs are identified as the real budget problem.
• Treasury's bond buyback is called a panic move with little likely impact.
• He warns of inflation and financial repression via artificially low rates.
• Such policies would hurt savers and fixed-income investors.
• Tariffs are rejected as a revenue-raising tool.