- Moderator
- #41
People said the same thing when we hit 1 trillion. Same thing when we hit 5 trillion. The fear mongering over the debt needs to end. First of all, the public debt does not stop a governments ability to create and spend new money, which is important, since we Create our own currency. The US can also, literally, never default on the debt. I have made another post on this with a relevant article. (We can't default on our own obligations, so don't worry about that.) The historical evidence in my OP shows that cutting the deficit/debt doesn't really do anything good, in fact, it's harmful. Unlike personal debt, the debt people have that they seem to think the government has, the government doesn't have to worry about leveraging. The government doesn't have to sacrifice paying off bills in the future. Also, the debt payments, if you want to call them that, are very manageable right now, and will continue to be. Funny thing, the government holds its own debt, and it doesn't hinder the governments ability to pay other obligations. Let me make this clear, and you will probably call me crazy.. But: the national debt DOESNT get paid back, in fact, it's the saved dollars of people and businesses that have earned those dollars. Let's use an example: pretend you have 599 million or some random large number. Assume you don't want to spend it or invest in the market, how do you store it? Buying bonds! Oh, and interest payments, I stress for the third time, are very manageable and don't prevent the government from focusing on other obligations. I should mention government surpluses literally remove money from the economy, making them a danger for a long period of time. This is where deficits come in. Long term reduction of deficits leads to removing dollars from the economy.. Refer to the OP for the effects of this.. The Clinton surplus literally sucked dollars out of the private sector here at home, leading to a recession.Our national debt currently sits at a little over $19 trillion. How much is too much?