National debt is not a problem, interest rates are low. The trap is bigger.
1. Interest rates for borrowing are low and going lower. It's not nice having a huge national debt, but it's not our biggest problem.
We have bunches of people not working, we're better off working them while raising that debt rather than austerity and watching more people not finding work.
2. The big problem is outstanding derivatives neatly tucked in retirement accounts waiting to be cashed. By then, there will be no cash. Partly because of too many not working.
Already, cities and companies cannot pay their retirees.
The Republicans made hay out of derivatives over and over.
First, it brought up a floundering Bush economy in 2004 by borrowing against our future. (Welcome to the future.)
Second, it made their buddies in banks a lot of bucks, including our direct tax dollars.
Third, it comes due later, in the future, in a future Obama administration. Oh, yeah, we're here now. The retirement accounts across the country are going or going to go under. ***Remember what fun the fund managers had going to Hawaii to learn how to invest retirement accounts?***
Fourth, with people not working, government on the hook for retirements, Social Security will be argued as not viable. Too bad, so sad. (With a hands up Yippee from Republicans.)
Our U.S. 15-trillion dollar economy runs on about 2-3 trillion in cash. So, how much derivative cash is out there? I hear 600-1200 trillion dollars.
That's a lot of debt.
The national debt is a tiny 16 trillion in comparison.