US debt load question?

Is the US national debt crisis equal in magnitude so to speak to the current European debt crises?





What I am saying is whether the US debt issue has strong possibilities of causing similar problems here at home that is happening right now in Europe?





Is the US debt a ticking time bomb that could explode to European proportions?|||The US has a mystery power.It can print the dollar to repay debts. It will not be like Greece whatsoever.|||No. Not to say US debt will never cause some big problem. But there are key differences. The US runs a deficit but actually has no difficulty at all borrowing enough money to meet the budget, and has no difficulty rolling over debt (selling new bonds today to generate the cash to redeem existing bonds that are maturing). Despite all the talk about the debt, interest rates on US bonds are at all-time record lows. That means, in other words, that there is plenty, plenty of demand among bond investors worldwide to buy all the bonds the US government wants to sell.





By contrast, Greece, already today, CANNOT make its budget, cannot pay its expenses, and cannot borrow further money from the bond markets. Nations don't actually file for bankruptcy -- but if they did, Greece would have already filed for it, because they are bankrupt. No hypothetical future problem here - it's the reality right now. Greece, Ireland, and Portugal all have already had to be bailed out by the European Union because they could not make their payments. Further, Spain and Italy are approaching that point.





Now that's bad enough and makes Europe's situation different than the US. But the real problem is that the EU cannot continue bailing out Greece forever ... and Greece is making no improvements at all ... they are only getting in deeper. So when the EU decides to cut its losses on Greece, and allow Greece to simply default on its bonds, things could get very disastrous in Europe. No one knows how bad it might be, but the issue is the chain reaction that may cause. And that can happen tomorrow. Any day. Europe might be 12 hours away from an unprecedented collapse ... and while it may not happen 12 hours from now, that same state holds true tomorrow and the next day ... and that fact will continue to be the case for a long time (probably until it does finally happen).





Because the US controls its own currency, it has more remedies than a single European country does. And because the US is a single nation, it can make a unified, effective response to a crisis, whereas Europe is proving to be a gaggle of competing interests and ineffective leaders. Greece does not have a central bank that can print Euros as a last resort. The US does have a central bank that can print dollars as a last resort.|||Yes, because the government is not pulling out of the 2 wars any time soon. War is very expensive.





They can only print so much money without backing. China will increase interest rates sooner or later.