Originally Posted by adobeee
U.S. may be the "wealthiest" nation, but the country is levered into oblivion.
If the country doesn't manage to pay down its principal debt and interest payments (with a large portion coming from China), the government would have to make some drastic cuts to various government and military agencies, potentially affecting both the perception and actual "strength" of our military.
Well yeah as a function of GDP our debt is > 100% annually, but by wealth I meant overall net worth. The collective net worth of U.S. households is something like $60 trillion, and our total debt is what, something like $14 trillion?
So we're still comfortably positive but yeah I definitely agree with your concerns. I'd like to see some years with a surplus budget so we can start paying down our debt.