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I don't agree with that. Much of our debt comes from bonds which need to be repaid in a few years. So we're constantly having to reborrow on our debt much lik
by TomOfTTB 15y ago
I don't agree with that. Much of our debt comes from bonds which need to be repaid in a few years. So we're constantly having to reborrow on our debt much like someone jumping from credit card to credit card.
If anything the current debt is like the credit card and the unfunded liabilities are the mortgage.
- mbreese 15y agoBut those debt payments can be further financed, so it could be seen as more like a revolving credit line.
- rdl 15y agoThe average maturity of US debt is 5+ years. And, can be rolled over -- at worst, rolled over at historically prevailing interest rates. Off balance sheet liabilities are more of a concern than the official debt. The declining ability of the US to repay debt is a major concern (due to declining competitiveness). The actual level of official debt right now isn't itself a huge concern.