America's Debt Time Bomb

America's exploding debt is a ticking time-bomb. No one can say for sure what might trigger a crisis and when the bomb might explode, but this much is for sure: America's current level of borrowing is unsustainable.

America's debt crisis is reflected both in our exploding national debt and our astounding level of borrowing from foreigners, as measured in the current account trade deficit. Every day we fail to address these problems, we increase the chances that the country will be facing an economic crisis of major proportions. Yet few Americans are aware that anything is amiss. The mainstream media covers the issue intermittently, but because the debt increases incrementally, the issue lacks the sort of "crisis" banner that motivates editors and reporters. The lessons of history are clear: a nation's heavy borrowing from abroad is usually a precursor to decline. America's debt is also a moral issue, because we are in effect stealing from future generations. By borrowing so heavily today, we are hollowing out the foundation of America's economic future.

There are two components of America's debt time-bomb: the national debt and the current accounts trade deficit.

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