Has the U.S. really been deleveraging? Absolutely yes in the private sector, particularly among...


Has the U.S. really been deleveraging? Absolutely yes in the private sector, particularly among financial institutions. But in the public sector, a substantial buildup in debt has occurred in recent years. Taken altogether, total U.S. debt today is higher as a percentage of GDP than ever before.

Comments (5)
  • Tack
    , contributor
    Comments (16264) | Send Message
     
    The difference is that Government, with control over its own currency, doesn't have to pay sovereign debt back, and it can print money to service the debt, ad infinitum, whether it's earned or not, i.e., it can't go bankrupt. It may have impact on the value of the debt and the related currency, but it doesn't carry the private sector's liquidity risk.
    7 Mar 2013, 06:45 PM Reply Like
  • bigbenorr
    , contributor
    Comments (1143) | Send Message
     
    Must be nice....
    7 Mar 2013, 06:47 PM Reply Like
  • davidingeorgia
    , contributor
    Comments (2661) | Send Message
     
    Yes, I'd like to have that money printing thing as an option myself, though the authorities tend to frown on you printing your own from what I hear. :-)

     

    It may not ever go bankrupt, Tack, but it can sure make the money it's printing pretty much worthless to the people who are stuck using it in their every day lives. Seems like that's the long term goal sometimes.
    8 Mar 2013, 06:03 AM Reply Like
  • bigbenorr
    , contributor
    Comments (1143) | Send Message
     
    The governent hates competition.
    8 Mar 2013, 12:21 PM Reply Like
  • dividend_growth
    , contributor
    Comments (2895) | Send Message
     
    Government, household, and financial have basically been even.

     

    Corporations have increased their debt, but they make half their money from overseas.
    7 Mar 2013, 07:06 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs