Japan has been printing money at twice the rate of the US and has double the national debt-to-GDP ratio, yet they are experiencing deflation and have the worlds lowest interest rates. Printing more money != inflation. However, deflation isn't necessarily a good thing either. Regardless, if we had to solve the nations debt crisis, is restructuring the debt and paying say, .85c to $1 at the cost of a temporary credit hit not worth it if it meant reducing the debt? If you want to pay it off, sometimes you have to make critical decisions. Would it mess with the global markets? Absolutely. Is it worth it in the end? Depends on how much you value on being a debt-free (or even debt-managed) nation.

 

As it stands, Hillary Clinton has not proposed anything to manage the debt. She talks about a trillion dollar tax increase, but nothing about cutting spending or reducing debt. Donald Trump at least has talked about managing and reducing debt through reduced spending, lower taxes, trade deals, limiting regulation, and buying back debt if the economy is healthy.

 

http://www.investopedia.com/articles/inv...roblem.asp

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