Your credit cards are maxed out, you have a car you can't afford, your house is too big, inflation is eating as your savings, heating costs are on the rise, and you haven't got a raise in years! Yikes! We are not talking about your personal finance but about national debt!
Running so close to the line means there are some things we will need to give up to get our budget to move from red to black. Maybe right now isn't the time for the diamond bracelet and Lamborghini (Sorry I have been watching the show Ballers and let me say it is interesting to watch young people with money but not the experience to save.)
National debt has some risks and it reduces our capacity to invest in things that create net positives and improve on our financial position (I was playing around with this idea of Perpetual Sustainable Systems and allocating some money back to national debt. It was more for theoretical discussion.)
This article indicates that in January we did ok and didn't add to foreign purchases of debt. Foreign Holdings of National Debt Steady in January.
Consider that we want people to purchase our debt at a cheaper price because they trust our ability to repay but we have a responsibility to reduce the amount of debt in total and balance our budget. What is the National Debt?
There is some good explanations on the dangers and risks of high national debt at IMF Risks of High National Debt and Slow Growth
The House Budget Committee indicates that national debt is around 122% of GDP and influences things like credit cards, inflation, mortgages, etc. that reduce spending power and contribute to crisis. House Budget Committee on National Debt
Finding ways to streamline some processes, improve effectiveness, maximize benefits of money spent, and improve economic output through manufacturing/technology will likely be helpful. As always it is a complex system with lots of different opinions and competing interest. Have any thoughts on the topic? Feel free to leave a comment.
A blog that explores life and national development “The price of freedom is eternal vigilance.”—Thomas Jefferson
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