S has neglected two important facts.

1. Our debt is made possible because countries with a lot of cash are looking for the best bet, and America is that bet. Their continued investment in America shows that they don’t agree with your claim that we are going down. They wouldn’t buy our bonds or our buildings if they thought they’d drop in value, would they? So, whatever you think, the world still likes America’s risk/return.

2. Inflation is a very real and immediate problem. Greenspan, in his arrogance, kept his foot on the accelerator, and kept the fuel flowing to the point that now we are awash in money supply, and prices are going up because of it. Inflation needs to be addressed for local reasons – it hurts the baby boomers in their retirement. But it works in our favor internationally because all the debt that you decry will likely be paid off with cheap, cheap dollars when the notes come due.

Besides, if push comes to shove in a real big way, we can always cancel our foreign debt and thank the world for their patronage. Better to owe than to be owed when all hell breaks loose.