Does the U.S. public (national) debt matter?

Unfortunately, the external portion of the U.S. Public Debt is nearing an unsustainable level ("external" Debt to GDP Ratio above 90% of GDP according to Economists), and with annual U.S. Federal Budget Deficit s increasing it every year, we're headed for Sovereign Default. read more

For a country like the U.S. with a good payment history, (relatively) strong economy and control over its own currency, the answer at least for the moment, is “not too much.” To understand why, looking at the country’s total debt, which has nearly doubled following the financial crisis, matters less than how much it costs to finance our debt. read more

The annual U.S. Federal Budget Deficit matters because each one adds more to the U.S. Public Debt and the required debt service that must be paid out to all the holders of Treasury Bonds and Notes. read more