I wrote:
... the graph has a new term for the so-called "national" or "public"
debt. Now, it's the _American_ debt. But it is not the "American," or "national," or "public sector" debt at all. Instead it is the _government_ debt. (read the graph.) And to whom? to the public! i.e., largely to America, to the nation. It should be called the "national," "public," or "American" _asset_. If you don't think of it this way, you think of treasury bills, bonds, and notes as burdens. So you should give them to me. I'll take them off your hands.
If we in the US are to worry about debt, we should worry instead about:
1. consumer debt compared to assets ...
2. corporate debt compared to assets ...
3. government debt to rich people ...
4. the national debt -- by the government, the private corporations,
and individuals -- to those outside the county. ... Charles Brown writes:
Are what you discuss in your first paragraph and number 4 the same thing?<
no, not all of consumer debt is to foreigners. And not all of US debt to foreigners is consumer debt.
Is this the one that China and Japan hold so much of, but can't hope to get paid ? <
the US is still pretty powerful in the world; it's no Argentina. China & Japan may have to worry about getting paid at lower rates (after adjusting for exchange-rate changes) but they don't have to worry about not getting paid.
Does it include the accumalated trade deficits ?<
deficits _cause_ debts: if I spend more than I earn (running a deficit), I end up owing more (having more debt) or selling more assets. -- Jim Devine / "The tooth fairy teaches children that they can sell body parts for money." -- David Richerby
