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What leverage? How much of our total outstanding debt does China and japan own? I'm not sure why you included Saudi but back to japan and China. What is the % of total debt? And why do they own the debt in the first place?
Maybe someone else can answer you perhaps a pre-school teacher, you should leave real discussion to adults.
I'm sorry but the fact you can't address simple responses to the topic you brought up speaks volumes more towards your understanding and capability than it does to myself not being an adult
Again how much of our total debt is owned by China and japan? Why did your mention Saudi Arabia,? And why doesn't japan and china own as much as they do?
We're rapidly approaching the point where it won't be repaid. Debt to GDP is at ~100%, and that's ignoring the huge unfinanced obligations in mandatory spending. A few more years like the present and it'll be a question of how it doesn't get repaid rather than if: whether we grow fast enough to make it realistically repayable again, go through an inflationary period, or outright default.
We're rapidly approaching the point where it won't be repaid. Debt to GDP is at ~100%, and that's ignoring the huge unfinanced obligations in mandatory spending. A few more years like the present and it'll be a question of how it doesn't get repaid rather than if: whether we grow fast enough to make it realistically repayable again, go through an inflationary period, or outright default.
The only reason why our debt couldn't be repaid is if we decide not to pay it. That's the only reason
The only reason why our debt couldn't be repaid is if we decide not to pay it. That's the only reason
True, but, being politically realistic a partisan solution won't stick because no one party will remain sufficiently dominant long enough to carry it out (you need years and years of balanced or surplus budgets), and given the mutual pain involved in a bipartisan solution (higher taxes AND lower spending) you're going to reach the point where Democrats start thinking it would be better to just inflate it away and Republicans think it's better to just explicitly default (and you can already hear voices in each party starting to take what will be their respective inevitable positions on the matter if it isn't dealt with relatively soon), and unlike paying it down, an outright or inflationary default can be forced quickly enough that the other party doesn't get a chance to kill it.
Oh. It's completely absent from your title and OP, which is why I was confused. Plus, debt is the difference between spending and taxes, so it wasn't really the tax dollars that were spent. And it was really done to compensate for our high trade deficit, not to pay for the war.
In response to your title, the US will never have a problem paying the debt because they can create US$ any time they like. I've been told that the only effect of high debt is to depress the international exchange value, which is something we could really use.
There are many things wrong with what has been done in the US, but "too high fiscal debt" is certainly not one of them.
Much of this would not be a big problem if the U.S. dollar remains the de facto global currency. However, there have been attempts to gradually replace the U.S. dollar and use a different global currency. Eventually the chinese yuan will probably succeed in becoming the global currency in the next 30 years.
Four pages of people who still don't understand what the hell public debt is.
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