How Does Debt Become a Problem?

( Cross-posted at charliehiphop.com) The United States Government IS NOT Like Your Family What if 46 cents of every dollar you spent was borrowed? You'd quickly find yourself bankrupt. Presently,

The federal government has been spending like drunken sailors. With no system to control spending, the lid is off Pandora's box and the debt is growing out of control. However, the real problem is yet to come. Learn more about it in this article!
Tags: Investing,Personal Finance,Retirement,Washington

The dollar's status as the world's reserve currency has become a facet of U.S. power, allowing the United States to borrow effortlessly and sustain an assertive foreign policy. But the capital inflows associated with the dollar's reserve-currency status have created a vulnerability, too, opening the door to a foreign sell-off of U.S. securities that could drive up U.S. interest rates. In this Center for Geoeconomic Studies Capital Flows Quarterly, Francis E. Warnock argues that a sell-off came close to happening in 2009. How the United States uses this reprieve will affect the nation's ability to borrow for years to come, with broad implications for the sustainability of an active U.S. foreign policy.
Tags: United States, Financial Crises, Budget, Debt, and Deficits, Francis E. Warnock

The Obama Administration is trumpeting that the budget deficit has been cut by half, "the largest four-year reduction since the demobilization from World War II." Indeed, CBO projects the deficit this year will be 3 percent, maybe dropping a few tenths over the next few years before beginning an inexorable climb driven by demographics, health