We consume, and that's about it

I saw the following this morning on Bloomberg @

http://www.bloomberg.com/news/2013-03-01/consumer-spending-in-u-s-climbs-even-as-taxes-hurt-incomes.html -

Household purchases, which account for about 70 percent of the economy, climbed 0.2 percent after a 0.1 percent gain the prior month, a Commerce Department report showed today in Washington.

HOUSEHOLD PURCHASES ARE 70% OF OUR ECONOMY ???

We consume, but we don't produce. That means these purchases are paid for by borrowing money and debasing our currency. This is a perfect recipe for DISASTER.

And one has to wonder when Mr. Bloomberg's come back is that we have an infinite amount of money and that people can't stop lending to us:

http://politicker.com/2013/03/mayor-bloomberg-dont-panic-about-the-sequester/

Really?

Jeez, are we screwed !!!