Quote from: netrin on October 05, 2011, 12:50:26 PM

I am in no way suggesting the United States defaults. I am only pointing out that comparison to Japan is absurd. If the Japanese government defaulted on its debt the entire nation would implode. It can also sustain huge debt with no inflation because the debt is held almost exclusively by a homogeneous nationalistic culture.

I think however that you can compare Japan of the past decade or two with the entire world today, but not any one nation, and most certainly not the United States.

What about Canada then?

With 16.5% of total public debt held by Non-Residents. Canada has a public debt ratio of 84% of GDP, compared with America's 62% of GDP. Wouldn't Canada be in more of a debt crisis than America???

http://www.fin.gc.ca/dtman/2009-2010/DMR2010_ENG.pdf (Pg 23.)