Question

What do you think about the severity of the problem of the U.S. national debt – should we be concerned about it?

Answer 1

Severity of problem of United States national debt isreaylly frightening in nature and one day it can hurt the prospect of United States economy very bad because United States Federal Government and central bank is piling upon a whole lot of debt, and they are trying to stabilize the economy through lot of stimulation but they will have to remember that these debt will be have to repaid and they cannotget away without payment of these debts, sovereign debt, even though they are called risk-free nature but they will be having a risk of default, if the United States economy is downgraded by major credit rating agencies and the sovereign dates are downgraded also due to liquidity and solvency crisis in United States economy.

These debt that are generally backed by government and hence they are thought of being risk-free because government has the authority of collection of taxes but over the period of time the value of domestic currency can fall drastically if the management of economy is not done properly so it can impact the prospect of United States economy if the debt is not managed accordingly and it can even lead to to default by economy as seen in Greece and other countries.

So it can be summarised that we should be concerned about the the severity of increasing sovereign debt and they can hurt the prospect of United States economy in future.