I swear I need to add a BBCode that pulls the current treasury yield every time someone brings this nonsense up.
When investors are more confident in getting a 1.5-3% yield then they are in getting that return from the economy, debt is not this country's problem.
Hmmm, I think that's both a little simplistic and a little complex, simultaneously. Somehow.
My issue with it is that while sure US Treasury bonds are doing all right-ish, the US's problems are precisely what the people of the US think they are. I'm not even over there and I hear all of this about how debt is crippling the country, selling the red white and blue to the Chinese, etc etc etc. Lord alone knows what it must be like over there.
And politicians want to be seen to be doing something. And arguments against debt seem
so persuasive, emotionally. "It's just like a household, you can't spend more than you have coming in." Forget the fact that, you know, it's not.
So I think there's a case to be made that debt, or the fear of debt, is a major US problem at the moment. Politicians will work to alleviate it so they can point triumphantly and cause massive problems in doing so.
While I agree with you that looked at objectively, as investors do, US debt isn't a crucial issue, I think saying its not the problem ignores how easily and readily it could become a very serious problem as people panic to rectify it.
I get that wasn't entirely the point you were making, and your comment was mired in frustration about people crying about it all the time, but sadly politics makes people immune to maths and just pointing to the treasury yields isn't going to change that.