The Clear and Present Danger of America’s Ballooning National Debt

Is it credible to bet on investors agreeing to buy $114 trillion in debt over the next 30 years? China and Japan have already reduced their holdings of American bonds.

Brian Kersey/Getty Images
Traders in the 30-year bond options pit at the CME Group at Chicago on April 27, 2011. Brian Kersey/Getty Images

The debt-ceiling standoff has people concerned about what will happen if America defaults on its debt. I certainly hope both sides will come together to avoid this outcome. But it is still worth reminding everyone how incredibly precarious the status quo is, and why something needs to change.

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