Quote:The national debt doesn't exist. You can't compare it to a credit card.

 

Yes, it does exist.   A growing portion of the federal budget is interest on the debt.   If the government gets to the point where it cannot raise enough in taxes to pay the interest on the debt, then the government will have to borrow more and more money to pay the interest on the debt, and they'll have to pay interest on that borrowed money, that will collapse like a Ponzi scheme, or the government will have to start creating money to pay the interest.   The Fed will be buying the debt at that point, and creating money to pay for it.   If that happens, inflation will undoubtedly spiral out of control, and if that happens, the interest demanded by prospective buyers of government bonds will skyrocket, and the debt will skyrocket.   There is no way out. 

 

Twenty TRILLION  dollars of US government debt is traded on bond markets worldwide, and once investors start thinking they may not get paid back, the world economy will collapse.  Then we will wind up with trillions of people out of work worldwide, wars fought for precious resources, and massive levels of starvation due to the collapse of the world economy. 

 

I really don't see how anyone can say the national debt "doesn't exist."   That is a bizarre statement. 

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