Comparing US debt to Canadian debt is like the old joke about the farmer and the bank, if I owe the bank $1,000,000 and I can't pay, I have a problem, If my neighbor owes the bank $10,000,000, and can't pay, the bank has a problem( Or add appropriate zeroes to make it relevant). The US can sustain what appears to be impossible debt levels far longer than anyone else.
Until every other economy in the world goes down in flames, the US can sustain these unsustainable debt and spending levels.
- 1 They have the worlds reserve currency, with no other contenders remotely close
- 2 The US consumer is still the only market in the world, three times bigger than the next(China), every manufacturing or exporting country needs the US consumer far more than they need them.
- 3 They have the only Military in the world capable of enforcing the peace (or enforcing whatever else they may desire to use it for)
- 4 As per my example above, just the size of the debt, If the US decides to default on debt to China(for example), China has a problem, not the US.
Until every other economy in the world goes down in flames, the US can sustain these unsustainable debt and spending levels.
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