Comment on Google surpasses $2T market capComments−coding1232yOur national debt is so much that we need to give half a Google to China each year−zamadatix2yChina owns < half a Google of US debt (i.e. ~0.84T). I think you conflated that with yearly debt payments instead.−lokar2yOther nations holding us debt is a natural result of both the trade deficit and the USD being the world reserve currency. There is nothing really special or sinister about china holding US bonds.−diob2yTo be fair, debt isn't an indicator of anything but credit being used to build something now (aka an investment in the future).So we should be focusing on what that debt is being used to fund, more than the debt itself. In my opinion at least.Overall I agree though, the debt is massive and isn't actually being used to better anything within the USA.−echelon2yThe interest on that debt will become debilitating unless we inflate away our currency.−zamadatix2yThe average inflation rate over the last 50 years is higher than the debt interest rate already so it won't really "become" anything.−dukeyukey2yChina only owns about $800 billion is US treasuries, so a one-time payment of 40% of Google should do.
Comments
Our national debt is so much that we need to give half a Google to China each year
China owns < half a Google of US debt (i.e. ~0.84T). I think you conflated that with yearly debt payments instead.
Other nations holding us debt is a natural result of both the trade deficit and the USD being the world reserve currency. There is nothing really special or sinister about china holding US bonds.
To be fair, debt isn't an indicator of anything but credit being used to build something now (aka an investment in the future).
So we should be focusing on what that debt is being used to fund, more than the debt itself. In my opinion at least.
Overall I agree though, the debt is massive and isn't actually being used to better anything within the USA.
The interest on that debt will become debilitating unless we inflate away our currency.
The average inflation rate over the last 50 years is higher than the debt interest rate already so it won't really "become" anything.
China only owns about $800 billion is US treasuries, so a one-time payment of 40% of Google should do.