Where is the US economy headed?

They just gave out on the BBC News (second item) that the US national debt stands at $9 trillion. And rising.

I make that about $30,000 each and when you consider how many kids there are and OAPs and sick and unemployed and also that the demand side is getting bigger it is hard not to feel sorry for the supply siders.

Arts of luxury
Agriculture is the foundation of manufactures, since the productions of nature are the materials of art. Under the Roman empire, the labour of an industrious and ingenious people was variously, but incessantly employed, in the service of the rich. In their dress, their table, their houses, and their furniture, the favourites of fortune united every refinement of conveniency, of elegance, and of splendour, whatever could soothe their pride or gratify their sensuality. Such refinements, under the odious name of luxury, have been severely arraigned by the moralists of every age; and it might perhaps be more conducive to the virtue, as well as happiness, of mankind, if all possessed the necessities, and none of the superfluities, of life. But in the present imperfect condition of society, luxury, though it may proceed from vice or folly, seems to be the only means that can correct the unequal distribution of property. The diligent mechanic, and the skilful artist, who have obtained no share in the division of the earth, receive a voluntary tax from the possessors of land; and the latter are prompted, by a sense of interest, to improve those estates, with whose produce they may purchase additional pleasures. This operation, the particular effects of which are felt in every society, acted with much more diffusive energy in the Roman world. The provinces would soon have been exhausted of their wealth, if the manufactures and commerce of luxury had not insensibly restored to the industrious subjects the sums which were exacted from them by the arms and authority of Rome. As long as the circulation was confined within the bounds of the empire, it impressed the political machine with a new degree of activity, and its consequences, sometimes beneficial, could never become pernicious.

Foreign trade
But it is no easy task to confine luxury within the limits of an empire. The most remote countries of the ancient world were ransacked to supply the pomp and delicacy of Rome. The forests of Scythia afforded some valuable furs. Amber was brought over land from the shores of the Baltic to the Danube; and the barbarians were astonished at the price which they received in exchange for so useless a commodity. There was a considerable demand for Babylonian carpets and other manufactures of the East; but the most important and unpopular branch of foreign trade was carried on with Arabia and India. Every year, about the time of the summer solstice, a fleet of a hundred and twenty vessels sailed from Myoshormos, a port of Egypt, on the Red Sea. By the periodical assistance of the Monsoons, they traversed the ocean in about forty days. The coast of Malabar, or the island of Ceylon, was the usual term of their navigation, and it was in those markets that the merchants from the more remote countries of Asia expected their arrival. The return of the fleet of Egypt was fixed to the months of December or January; and as soon as their rich cargo had been transported on the backs of camels, from the Red Sea to the Nile, and had descended that river as far as Alexandria, it was poured, without delay, into the capital of the empire. The objects of oriental traffic were splendid and trifling; silk, a pound of which was esteemed not inferior in value to a pound of gold; precious stones, among which the pearl claimed the first rank after the diamond; and a variety of aromatics, that were consumed in religious worship and the pomp of funerals. The labour and risk of the voyage was rewarded with almost incredible profit; but the profit was made upon Roman subjects, and a few individuals were enriched at the expense of the Public. As the natives of Arabia and India were Gold and silver contented with the productions and manufactures of their own country, silver, on the side of the Romans, was the principal, if not the only instrument of commerce. It was a complaint worthy of the gravity of the senate, that in the purchase of female ornaments, the wealth of the state was irrevocably given away to foreign and hostile nations. The annual loss is computed, by a writer of an inquisitive but censorious temper, at upwards of eight hundred thousand pounds sterling. Such was the style of discontent, brooding over the dark prospect of approaching poverty. And yet, if we compare the proportion between gold and silver, as it stood in the time of Pliny, and as it was fixed in the reign of Constantine, we shall discover within that period a very considerable increase. There is not the least reason to suppose that gold was become more scarce; it is therefore evident that silver was grown more common; that whatever might be the amount of the Indian and Arabian exports, they were far from exhausting the wealth of the Roman world; and that the produce of the mines abundantly supplied the demands of commerce.

Some analysts believe another 100 to 300 banks could fail before the crisis runs its course, largely because of souring loans for commercial real estate. The number of institutions on the FDIC's internal "problem list" " those rated by examiners as having very low capital cushions against risk and other deficiencies " jumped to 416 at the end of June from 305 in the first quarter, the agency reported Thursday.

Q: What's behind this?

A: Banks around the country have run into trouble on their loans for construction and development, the fastest-growing category of troubled loans for U.S. banks, especially in overbuilt areas. Many companies have shut down in the recession, vacating shopping malls and office buildings financed by the loans.

It was a complaint worthy of the gravity of the senate, that in the purchase of female ornaments, the wealth of the state was irrevocably given away to foreign and hostile nations.