U.S. credit rating downgraded by S&P

... which makes this video about 30 minutes out of date. It's instructive, nonetheless.



This downgrade effectively means the price of most state and local public sector borrowing just went up.

Video: BIPPS' Jim Waters on Kentucky Tonight's debt discussion

Jim Waters of the Bluegrass Institute took part in a panel discussion about United States' debt problems on Monday night's 'Kentucky Tonight'.

You can watch the full discussion here.

BIPPS on 'Kentucky Tonight' ... tonight!

Jim Waters, vice president of policy and communications for the Bluegrass Institute, Kentucky's free-market think tank, addresses the debt-ceiling controversy tonight on KET's Kentucky Tonight at 8 p.m. (EDT)

Click here to watch last week's show on the issue. Panelists included Kathy Gornik, chairman of the Bluegrass Institute board of directors.

Waters will be joined by WKU economics professor Brian Strow, Kentucky AFL-CIO president Bill Londrigan and UK economics professor Ken Troske.

Bill Goodman hosts the hour-long, award-winning public affairs program, which is replayed at 2 a.m. on Wednesdays.

During the live Monday broadcast, viewers with questions and comments may participate by calling 1-800-494-7605 or by e-mail at kytonight@ket.org or use the message form at www.ket.org/kytonight.

'Kentucky Tonight': More on the debt-ceiling debate

Jim Waters, vice president of policy and communications for the Bluegrass Institute, Kentucky's free-market think tank, addresses the debt-ceiling controversy Monday on KET's Kentucky Tonight at 8 p.m. (EDT)

Click here to watch last week's show on the issue. Panelists included Kathy Gornik, chairman of the Bluegrass Institute board of directors.

Waters will be joined by WKU economics professor Brian Strow, Kentucky AFL-CIO president Bill Londrigan and UK economics professor Ken Troske.

Bill Goodman hosts the hour-long, award-winning public affairs program, which is replayed at 2 a.m. on Wednesdays.

During the live Monday broadcast, viewers with questions and comments may participate by calling 1-800-494-7605 or by e-mail at kytonight@ket.org or use the message form at www.ket.org/kytonight.

Should the U.S. declare bankruptcy?

A recent CNNMoney article says that Congressman Ron Paul thinks the United States should declare bankruptcy. You can read the article here.

Paul cites Greece as an example that the United States should watch carefully. What do you think - is the best option for the United States to default?

Watch KET's 'Kentucky Tonight' discussion about the debt limit

Bluegrass Institute adjunct scholar John Garen took part in a panel discussion last night about the United States debt limit and the size/scope of government.

You can watch it here!

BIPPS adjunct scholar John Garen on Kentucky Tonight talking deficits and the debt ceiling

John Garen, Ph.D., University of Kentucky economics professor and adjunct scholar for the Bluegrass Institute, will join three other economists on KET's Kentucky Tonight on Monday at 8 p.m. (EDT).

Garen will be joined by fellow economic professors Brian Strow of Western Kentucky University, Chris Phillips of Somerset Community College and Malcolm Robinson of Thomas More College.

The panel will discuss the nation's economic condition, including the federal budget and debt limit.

Kentucky Tonight is hosted by Bill Goodman and will be replayed Wednesday at 2 a.m.

Garen is the author of the Bluegrass Institute publication "Fears versus facts about school choice: An overview of issues surrounding the effects of competition on public education."

To see other Bluegrass Institute articles by Garen, click here.

Drowning in debt

While Kentucky families struggle to make ends meet, the federal government continues to borrow and spend without inhibition or a proper understanding of what's at stake.

Data released by George Mason University's Mercatus Center shows why the federal debt should concern Kentuckians.

Senior research fellow Veronique de Rugy illustrates in the graph below how interest rates will soar if current trends continue and lenders realize how risky it is to invest in the American government. By 2084, interests costs could soar to 136 percent of GDP.

How can our government swallow that?

Kentuckians should be troubled by these developments.

De Rugy warned:

"Large and sustained deficits and debt inevitably cripple economic growth. The money the federal government borrows comes from Americans’ savings. So does the cash that Americans invest in private sector growth. There comes a point where there just aren’t enough savings to satisfy both masters. Unfortunately for economic growth, the government always helps itself first."

To read more about America's debt and solutions to fix it, read de Rugy's piece in Reason Magazine.

How solvent is your commonwealth?

You've heard about the financial meltdowns occurring in states like California, where things have gotten so bad that workers are being issued IOUs instead of paychecks.

But according to US Debt Clock.org, it's not California or New York or Arizona that's in the hottest fiscal water. It's.........Kentucky!

That's right.

According to the real-time info on this "clock," Kentucky's 32 percent debt-to-GDP (technically, it would be Gross State Product, which is the best indicator of a state's economic health) ratio is the highest in the entire nation. And that percentage keeps growing.

And just think, the Kentucky House of Representatives wanted to add more than $1 billion worth of additional bonded indebtedness to the backs of Kentucky taxpayers during the just-completed legislative session. Shameful.

For your added viewing pleasure: Watch the "clock" and you'll see the debt, like magic, increase right before your very eyes!!