There is no national debt.Submitted by MarkDran on Sun, 03/23/2014 - 18:29
The US has spent over budget for 30 years. The government has spent without interest rate penalty. It is almost as if there were no books to be balanced. Therefore call a spade a spade: there are no books to be balanced. The national 'debt' is the living history of currency devaluation. Every year there is a budget deficit and the government prints the difference. If there is no national debt, then there is no QE either, as that was fronted as a purchase of treasury bonds.
UPDATE: As was mentioned by others, the notion is that if a government decides to run deficits forever then it doesnt have to pay back its debt and the debt just measures how much new money the government borrowed into existence (currency devaluation).
However Spiritof76 pointed out there is a difference between printing money into existence and borrowing money into existence but not paying back the principal. When you borrow money, the creditor gets interest payments. These interest payments unfortunately require the debtor to keep rolling over the debt.
So it would have been smarter for the government to just print money to cover deficits, like its doing now. thank god.