Krugman in Wonderland

People think of debt’s role in the economy as if it were the same as what debt means for an individual: there’s a lot of money you have to pay to someone else. But that’s all wrong; the debt we create is basically money we owe to ourselves, and the burden it imposes does not involve a real transfer of resources. NY Times

Translation, if we have enough public sector teachers brainwashing us into thinking we are one family, then yes, we might get a bunch of foolish Californians to pay a 25% premium on federal debt costs. The Keynesian lie.

Truth: We are not all the same. We do not even have the same amount of democracy among us. It doesn't help if bureaucrats in DC get to print their own salaries, in California you made it illegal for John Lockyer to print money. We are not all that same.