Jeremy Grantham on the government debt problem

Going back to my last post, the point I was making there is that government economic policy should be geared toward helping to maximize the efficient long-term use of real resources. The goal has to be on the real resources. In the video below, which is an excerpt of a Charlie Rose interview to be aired tonight, Jeremy Grantham says pretty much the same thing.
Here's a bit of the transcript, talking about government debt:

I feel – I guess – that it's substantially too high. I guess that you shouldn't try to make it low in a hurry, but you should have a 20-year plan to chip away.
We've gotten ourselves into a bit of a rathole, and we should be careful getting out of it, but it is not the overwhelming thing that will dominate our future.
What it does is it distracts us from the real ...


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