@steven787: What is the fundamental difference between credit card debt and national debt that you're thinking of?

Credit card debt is generally accompanied by fees, high interest rates set by the creditor. The amount borrowed is determined and limited by the creditor with limited openess (as a debtor can't shop too much for a credit card, because each report inquiry hurts their score, what economist call asymetric information)

Government bond and treasury note interest rates are set by the debtor slightly above inflation based on demand for the note.  The amount borrowed isset by the debtor and sold on an open market with complete disclosure (symetrical information?) .

Debt held by U.S. citizens (saving bonds, etc.)

6,059,726,289,765.44

Total debt

10,334,206,499,002.15

That's about 60% of the national debt.

Savings bonds and treasury notes are basically a voluntary program where people can receive interest for "investing" in america.  This keeps taxes low and encourages savings.

Credit cards encourage people to buy stupid shit that they can't afford.

That being said, that doesn't mean that national debt is good.  When it's too high, they have to raise interest rate to encourage more sales, meaning there will be less to use later.

True, the interest rates for national debt are lower.

National debt held by citizens of a country doesn't seem a big problem to me. It's the debt to other nations which worries me more. One could also argue that many countries are "buying stupid shit they can't afford".

It's really normal, my previous post showed US holding of foreign debt. It should be a net of zero. The U.S. has about a 3 to 2 ratio of international debt owed to debt held.

It is diversification of the customers for the debt, if the U.S. doesn't sell them abroad it will have to raise interest rates to entice buyers (which doesn't guarantee buyers).

If a foreign country buys $100 in US debt for 10 years at 3 percent, we are basically paying them $130 for that loan (keeping it simple, not compounded).

Think of it this way, for every dollar China spends on US debt, they are raising demand of the dollar and increasing it's value. Also, that dollar is being circulated in the US, creating jobs (increasing demand for labor raises wages and tax revenue, and ultimately the ability to pay back that debt with profit left over).

Even when the government commits wasteful spending they are creating private profit and jobs.

Only in canada would the communists show up to protest the Nazis.

Ok, maybe its too early, but wtf?

edit - nm. googled the date. Federal Reserve Act.