I linked to this piece because it is a succinct argument regarding the national debt. There are two schools of thought. One is that debt is no big deal because the government controls the currency and can float its way out of any trouble caused by debt by inflating the currency.
The other holds that a government’s balance sheet is not much different from a household balance sheet. In other words if you reduced the US budget to household numbers you would find we earned 21 k spent 38k which is about 17k more than income and the total credit card debt is 140k or more.
Denninger does the numbers to show his argument that debt has to be repaid and that the service on debt is always crippling. The other guy’s argument. It sounds to me more like “trust me, I am an expert.”
But you can read it yourselves. I tend to agree with Denninger, credit is nothing more than debt and debt will be repaid somehow,