This is 100% correct, US "Debt to GDP" is pretty similar to when Canada max'd out it's government debt levels sometime in the 1970s and 1980s ( can't remember exactly when ). Personal taxes got quite high, especially for single wage earners in the middle class. Simply by tapering off the level of new debt and raising taxes, the US is easily solvent. Canada actually went to surpluses later on, despite what looked like a massive debt based economy earlier. Personal tax levels and federal debt levels in Canada have both reduced significantly since the early 1990s. Provincial debt levels are perhaps an issue, but bigger picture we are in much better shape then we used to be. All the US is doing is solving a real crisis over time well within their capabilities, much like Canada did in the past. The real challenge is managing citizen expectations and the associated political risks ; one can see from this site the amount of overreaction and nervousness that these kind of necessary changes create. 5-10 years of extra pain will probably right the ship, and ensure your children don't take on an unfair burden moving forward.
Government debt in the US is like a mortgage on a nice home in a good neighborhood. Levels are reasonable but do require some higher personal taxes to ensure they stay reasonable. Do some research, solvency is not an issue, US assets and land has massive value. Canada had a similar situation in the past when interest rates were much higher. We got through it, I think the US has a stronger corporate base and can easily weather these storms, just not as easily as recent decades.
The US Government's debt is also an asset on the owner's books, so any default or renegotiation would have to be surgical to avoid the type of catastrophe we dodged back in 2008.
Curious, were you around in 2011 when the European periphery went bankrupt? That's what happens to insolvents. The exception is in that case the IMF/ECB/FED essentially agreed to bailout the European periphery and continue funding their deficits, despite global capital markets saying no mass. Had the latter not happened, we would be witnessing an entirely different Europe today. America is too big to bail out. There is no country or syndicate large enough to bailout the United States without destroying their currency in the process. That's why the European periphery could be bailed out with seemingly no consequence (they were small enough), and America cannot. This is why IMF SDR's have been floated as an alternative reserve currency to the dollar. Google Jim Rickards and The Death of Money. Carving up America like Greece to pay debts is a defacto default. Printing money is a default. Renegotiating is a default. To say America is more like Canada or more like Greece is anyones guess. Everything works until it doesn't. America's debt to gdp is 107%. Greek, Italian, Portuguese, Spanish and Irish yields exploded around 110-130% debt to gdp. Wanna take that gamble and just "hope" everything works out?
Yeah, I have been hearing it my entire life and seen little evidence. I have previously covered this issue in other post and refuse to cover it again. If its budget surplus you want, why don't vote Clinton?
European periphery debt imploded at 110%-120% debt to GDP. America is at 107% debt to GDP. It's 5 minutes to close. What do you want to do, Gordon....?
Don't get me wrong, I would like to see the debt be addressed, but I see no evidence that Trump has any experience bringing debt under control. In fact, his track record shows just the opposite.
The debt is already out of control. All we're doing now is playing kick the can down the road with it until it implodes. Twenty trillion of debt and zero rates is the only way we can fund it. We're going to inflate it away or default. Anyone with an ounce of brains understands this. Hey wildchild. George W Bush spent a trillion dollars bailing out banks because "we have to destroy capitalism in order to save it" John Mccain's plan was for the US gov't to buy up all outstanding mortgage debt of the US. His finance director for this campaign when he proposed this was Carly Fiorina. John Kasich wants a giant expansion of medicaid because he wants to be read for St Peter and he thinks spending everyone elses money is the way he'll get a grand entrance into heaven. These are the kind of people that you voted for or wanted us to back this cycle. Your shit is getting really old, dude. Really, really old. Because that is all it is. BULLSHIT,