Yesterday, 07:46 PM
The only problem with the debt is that it will slow growth. The problem isn't doomsday. Inflationcan always be stopped by contracting the money supply. Tight monetary policy will mean slower growth but it isn't the end of the world. Greece has a problem because most of the people in the country work for the government and they won't do the right thing and fire 90% of those people.
Here is a guy who is a big Austrian in the Mises tradition lucidly explaining why the debt in not a danger. Amash/Ron/Rand/Schiff are just wrong on this and will probably always be wrong no matter how much evidence is shown to them. https://www.forbes.com/sites/johntamny/2014/03/02/rep-justin-amashs-libertarianism-will-greatly-disappoint-libertarians/#27308c093373
"Never explained by the doomsayers of the past, and not covered by Amash in the present, is what would be so bad about a scenario whereby the federal government would have trouble covering its debts. On its face, this would bring about a positive in that the investors who buy U.S. debt would simply allocate their capital elsewhere; ideally away from government consumption.
The predictable reply to the above is that default would greatly increase borrowing costs for the rest of us. Really? Apple AAPL -0.14%, Google GOOG +3.62% and Facebook are based in California, California’s government debts are legendary, but does anyone think that Apple would suddenly face financing difficulty if California were to default?