Random Thoughts on National Debt

 

debt

The United States of America’s nation debt clocked 19 Trillion last week.

This decision to continue taking on more debt is analogous to a bankrupt family applying for a new credit card to pay its old “maxed out credit card bills”.

How can a proper credit check on a family with huge debt = F, but the rating of US treasury bonds be always AA+?

My FICO score instructs me to pay off the revolving balance to be in good standing. Shouldn’t the same hold for the national debt. Whoever lent us this money is in for a big haircut or should get ready for a Zimbabwean style pay off.

My share of the national debt as of today is $158,902. Are we planning to pay it off honestly with savings? I am generally a stingy person, but I cannot catch up with this year after year.

1 Comment

  1. This debt will be never be paid off. Trump is correct that the world should “pay” for the “Policing Services” that the United States military used to offer, but he is wrong in claiming that the rest of the world does not pay us. Perhaps, it was not called “payment”, but the United States was allowed to borrow beyond its means for quite some time. When countries that have no military capacity to invade their lenders (e.g. Argentina) borrow more than their GDP they go belly up. The exceptions are the countries that can borrow from their own citizens like Japan.
    Given the inevitable default on the debt payment, borrowing like crazy might be a good while the country can borrow might be a good strategy.

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