Perpetual debt is nothing to fear
explains why the conventional wisdom on the debt, the belief that at some point the principle will have to be paid back, is dead wrong in a very insightful post. I’ll post his final paragraphs as a teaser to get you to read the whole thing:
Politicians and journalists who peddle fear of the debt, or fear of the present-value of future liabilities, need to defend their arguments from now on. Can they defend their fear-mongering against the valid assertion that none of the debt principal will ever have to be paid back? If they can defend it, let’s hear it. If they can’t, let’s hear them change their rhetoric.
Something’s got to give, and it’s time we started forcing the issue.
