National debt is not the same as personal debt. In fact, national debt is a very very good thing. All of those debts that add up to 17 trillion dollars have hard-set timetables for completion, no, China cannot "call it in" and ask for all of their money back.
National debt is a good thing because it means that other countries are happy to loan to the United States, and they are confident that they will get their investment back and more. Confidence is the driver of economies in a virtuous cycle, so as long as other countries keep loaning money to the United States, the US economy will be healthy. The day the US stops borrowing money is the day that the economy crashes worse than ever before.
Oh my, what a bold and explosive statement you have there.
National debts come into existence when governments spend more than what they earn.
These deficits are funded by direct loans from financial institutions, national trusts, bonds, LGs and other monetary instruments.
These loans have to be paid back, with interests, usually through tax increases, draconian spending cuts or, more loans.
National debt is never a good thing, especially one caused by chronic budget deficits, because it usually screams of incompetence, at the very least.
