Our national debt is equal, to the penny, to our national savings. It cannot be otherwise since all of our debt is denominated in dollars. Moreover, our debt is represented by the value of Treasury securities held by the public sector, the private sector foreigners, and the Federal Reserve. These Treasury securities are in fact savings bonds or credits in savings accounts.We should not call it borrowing because there is no loan agreement per se. Treasury credits accounts. The following video fully describes the debt and deficits in both an accounting and economic context.
The first step is to establish that solvency can never be an issue for a government that spends, taxes and borrows in its own (non-convertible) currency. The following quote from the St. Louis Federal Reserve usually does the trick, but this great confession from Alan Greenspan also helps.
Thank you for commenting, Robert, and also for the links.
I personally have always argued against the grand total of national debt, and because so much of it isn't debt, but assets we have -- such as SS trust fund, for example, which is (roughly) a $4 trillion asset. Because it will eventually be spent, though, it get's listed as a debit (and will still be collecting at the same time, not to mention).
Kelton's take on it is new to me, I admit, and thanks again for offering it on the site.