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Obviously, if the country borrows too much money, then it has to devote a significant portion of their “take” annually from tax payers to not finance govt, but to pay its debt. Sound like a relative you know? Personal finance and govt finance are similar that way.

But, what if you had a debt, it appeared large, but over the years you got one big pay raise after the next. Heck, even if your debt grew, if you’re income is growing even faster, your debt to income ratio is actually getting better, not worse. This was what Reagan beleived, that we would grow our way out of the national debt. And to a degree it worked, unfortunately as the coffers grew, so did the spending. Much liek the rich dudes wife deciding the next car is going to be more expensive, the mink a bit furrier, and the wine a bit more exclusive...

The US govt, and the Amercian financial machine are smarter than they appear. Also, they’d tell you all this, but maybe they’d rather keep it to themselves, so they don’t tip their hand to the rest of the world.

A dramatically weaker currecny, a great benefit is our national debt has now shrunk by about 30%... Now, we just need a govt that quits spending more, every time it takes in more.

Also, if you think the US is bad, then you should see other nations. We are the most solvent nation on earth really, and if anyone is living in a house of cards, look first at China, Japan, and most of W Europe.

We are the most solvent nation on earth really, and if anyone is living in a house of cards, look first at China, Japan, and most of W Europe.

China is adding export capacity like there will never be another US or european recession. The next time we cough, they get pneumonia. Heck, the housing decline just caused us to clear our throats a bit last month and China took a hit in the billions. The Japanese in the 80's and China now chose to keep their export markets too large in relation to expanding domestic consumption and thereby remained dependent on external conditions, mainly US, without domestic markets to fall back on. In the case of Japan, the cash inflow simply inflated property and equity values temporarily. In the case of China, it is driving a capacity expansion with no domestic outlet due to slave wages that is essentially an export pyramid scheme.

Obviously, if the country borrows too much money, then it has to devote a significant portion of their “take” annually from tax payers to not finance govt, but to pay its debt.

Yep, and it goes to furiners like those commies in China.

Its really gonna get ugly when they won't pay low interest to buy our debt.

Our debt is growing $6 for every $1 in GDP growth (as of 2Q07) and the ratio is increasing.

A dramatically weaker currecny, a great benefit is our national debt has now shrunk by about 30%... Now, we just need a govt that quits spending more, every time it takes in more.

Weakening the currency to shrink the debt is one solution, but the cost will be a repeat of the 70's.