Regardless of what you may read, debt is not a tool when it crushes the life out of your economy.
Hyper inflation is one way out, until there is rioting in the streets.
And MSNBC is a "great" news source. (yeah, right)
When you grow up and need somewhere to live, are you going to save up $350,000 in cash (in your penny jar, maybe?) to pay for it? Or will you get a 15-, 20-, or 30-year mortgage?
You understand a mortgage is just a long-term debt, right?
How will your Mommy & Daddy ever pay off THEIR mortgage debt on YOUR house ( http://www.whatismyipaddress.com )?
By making the payments!
Debt is a TOOL, not a "problem"
Your understanding of the actual nature of "National Debt" is deeply flawed...have you been listening to Fox News again?
Raise tax rates.
Print more money.
Rob Peter to pay Paul.
Sell California to China.
Now we as USA citizens, owe around 17 trillions dollars. So I'm wondering what gonna happen to us in future as if debt keep climbing. Yet Federal government revenue is 3 trillions a year from taxes.
Is there possible we pay more on interest than the revenues in future? We pay 300 billions dollars annually on interests only for now. As debt go higher, our interest expenses goes up.
Let say some day our debt go high as 200 trillions dollars, yet our renvue is only gonna be 4 trillions, and our interest expenses gonna be 4.5 trillions. Now if it gonna cost 3 trillions dollars to run the government. So it gonna cost 7.5 trillions yearly.
Now with this much on interests, we end up paying interest only and also borrow money to pay interest and yet borrow money to run the government. So meaning we are nothing but just borrowers only.
