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It seems to me that the current financial situation calls for some counter-intuitive moves. Right now, the US can borrow money at 1.6% on a ten year note. But given the fact of our outrageous indebtedness, it seems likely that sooner, rather than later, cranking up the printing presses for more money is going to result in some serious inflation. So I think it is in the best interests of our country to borrow several hundreds of billions of dollars at 1.6% now while we can and use the money to take care of some of our country’s more drastic needs, like roads, bridges, electrical systems, airports, rail links, etc... Once the inevitable happens and we have a run on our currency, we will be able to pay those bills at cents on the (current) dollar.

... Once the inevitable happens and we have a run on our currency, we will be able to pay those bills at cents on the (current) dollar.

That is one scenario. Just like us as individuals, it may sound good to leverage but if you don't have a job to pay off your leveraged debt, it doesn't matter, you lose everything.

If the govt can't collect taxes nor borrow new money to pay off old debt, it loses everything.

I have worked with bankrupt businesses in the 80’s. All that debt was going to be paid with inflated dollars. Didn't happen that way. The value of the assets dropped to 1/3 value and the lenders got very nervous.

Think about what happened to the Soviet Union.............

Am reading tea leaves, and not an expert. (imho) many (too many) countries are seeking methods to win as the dominoes start to tumble. The perceived solution at one time was to base all transactions on a global basis and eventually create blocks (as the Euro), the (unenacted) North American Trade Currency (rejected), and assorted other methods to hedge bets and equal out the value of currencies (worldwide). Currently, as dominoes begin to fall, (my guess) is countries (United States included) are seeking and utilizing cheap money from any source to continue without collapse. Will it work? I have no idea. One domino (Greece) is down. Two more are tilting (in Europe ... Spain and Italy). Germany is being hit extremely hard in the pocketbook to save the Euro, as are (imho) American taxpayers. To borrow more does not make my radar as a solution. Eventually payback is virtually no payback and nations begin to anger and then saber rattle. At that point ... options taken and words said devolve and the spiral down (or over the cliff) becomes eventually a point of no return. Leaders never listen to anyone with common sense (imho). The solution is to create the grand illusion normally, while (under the table) the dirt piles up till eventually the dirt is exposed. Then the blame game begins. The blame game is well underway, and those who hold the purse strings are making decisions. What decisions will be made and who will benefit is anyone guess. Wish I could be more specific, but like I said ‘am not an expert’.