There are two theories: - We're borrowing money, and we'll need to pay it back. That's scary. - Money is bits in a computer, and from the perspective of the U

There are two theories: - We're borrowing money, and we'll need to pay it back. That's scary. - Money is bits in a computer, and from the perspective of the US government, it's like video game currency. Debts and deficits are fiscal instruments. Which of these is correct, or something else, is TBD. I think a big part of the question is who holds the debt. I'm a lot more worried about foreign debt, and I'm a lot less worried about debt as a financial instrument to pay interest on de facto savings accounts.