Quote:
Originally Posted by Zinja
Bingo! That is what i was trying to explain to Shek that the US needs to take corrective action and not pretend that it is a none issue.
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It is not an issue now or in the near future, even if we continue to run budget deficits. The debt service simply is not that large of a burden, nor will it be. Most of the debt is structured around 30 year and 10 year bonds.
The issue that confronts the United States is its poor savings rate. If this doesn't turn around in the next 10-15 years, then potentially unstable imbalances could develop over time and foreign borrowing to continue the necessary pace of investment spending for growth would start to dry up. However, this is not an issue now.