Since I'm not an expert, I am not sure what this really means. What can be done about it?
Some say it's not a big deal when the US are highly in debt: The $US is the world's leading currency and those foreign states and banks that lended the US that money will not ask it back soon, because that would damage them just as much as it would damage the US. So a permanently high debt is allegedly not really a problem.
But there must be risks after all, or not? Much of this increased spending was taken into account in order to prevent the worst in the banking crisis. What if there is now, since debt is so tremendously high, another such crisis, maybe even worse? Aren't we screwed then?
After WW1, the German government was totally bankrupt, had to pay back the credits they had taken in war time, in addition to reparations. In order to do so, they just printed money. This caused a hyper-inflation: On its peak, the money would lose value so quickly that on the way from receiving a paycheck to the next market, it would have lost half its value already. A piece of bread that costed 1 Mark one day, might cost a million Mark by the end of the week (I am not exaggerating here). The effect was a completely paralyzed economy, a complete pauperization of all people who had savings (all of them were gone within a few months), but those who had debts were lucky -- they could pay them all back with worthless money. This experience has strongly influenced the German's attitude towards the economy, inflation is still a things that evokes quite a few emotions.
Another example is Hitler (sorry for all buddies here who might think "not again" :lol: -- don't worry, this won't be a Godwin's Law tirade again): Hitler and his government too did excessive spending and made ridiculously high debts to finance all the nice programs that gave many people the impression the Nazis are saving the country and bought them a lot of support. They never had the intention to pay it back in the first place. Right from the beginning, this plan was based on war eventually: Once the war will be won, it would be easy to pay it all back by exploiting the conquered territories and enslaving people, or confiscating property of people who will be murdered. Excessive brute violence to thoroughly change entire societies, including the financial systems, would solve the problem.
I wonder, if there really is such a risk of inevitable crash, either sooner or later, what do the leaders, politicians know? It's probably perfectly suited for conspiracy theories: They know we are at the brink of collapse, but don't tell the people for obvious reasons. But are they planning anything? Are there hidden policies already for the purpose to prepare us for the worst case, without people recognizing them as such? Or do they just stumble from one risky decision to the next, crossing the fingers and hoping it will still go well long enough, until they are out of office and can't be held responsible any longer?
Of course I may have the wrong impression and over-estimate the risks. If someone here is sufficiently well versed on this topic, I would appreciate your opinion.
At any rate, the current situation is scary.
