Again, not to belabor the point, since I'm getting the impression you are either (a) a troll; or (b) misguided, but debt is merely a function of demand for money. Money supply expands ONLY through the issuance of debt - as long as money supply tracks production, inflation is controlled.
Here's a thought experiment to disprove your thesis: if an economic collapse were to occur, who would you rather be? The creditor or debtor? That's why it's better for the US to be a debtor nation - all that paper held by foreign states is worthles if we leave the game.
Correct, and paying back debt with inflated money benefits the debtor, not the creditor. That is, debt becomes "cheaper" as money is inflated over time.
Ths sky ain't falling.
So if I get you correctly, you are saying that it is ok to rack up huge debts and then not pay them.
Geez you sound like a lib to me. Real people pay what they owe. They don't steal money by borrowing and then inflating away their debts. Get real you sound like a commie.
I have been preaching the same to the woe-is-me crowd about trade and current account deficits.
I am not a Trump fan but I recall during the '80s real estate and S&L crisis that he owed the banks lots of money he couldn't pay. They threatened him an he told them to loan him even more so he could stay in business or take over the mortgaged property and run it themselves. He got the money and seems to be pretty solvent now. However, I bet he still owes the banks a ton on new loans.
The really big boys like to talk about leverage as the golden key. That boils down to operating on someone else's money.
That keeps the banks happy because they like moving money in large chunks rather than millions of nickel and dime loans, and it keeps the big players happy. That is also where the large debt comes from, that and hundreds of millions of credit card transactions, and it is all part of the system. To eliminate it is to throw the brakes on the entire world economy.
It is idiocy to consider going back to the gold standard. After all, over time the equation has been reversed. It is no longer what is a dollar worth in gold but what is gold worth in dollars.