The real threat

The US national debt is not a threat to the US economy. Japan has a far higher debt/GDP ratio and still doesn't have hyperinflation. Most of the debt is owed to ourselves, since Americans hold most of the debt.


The real threat to the US economy is default on the debt ceiling. If the US stops paying the bills for debts incurred by previous Congresses, the good faith and credit of the US will be damaged, perhaps irreparably. The reason the US dollar is the world's reserve currency and the reason that US treasuries are the safest investments on the planet is because of trust. Break that trust and you break the faith in US leadership. If that happens it will hurt the US and advantage China, which seeks to make the Renminbi the world's reserve currency.

Which American party wants to tank the US economy? Watch and see.

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