The argument that the US federal debt is causing economic problems is the most ridiculous argument I've ever heard. Clearly no one in this god-forsaken country other than the "private banking system only in it for itself" is well versed in finance and economics.

Firstly, what would you cut? Social Security? Defense spending? Name something that's "waste" before you tea party your way into an election win. Frankly, yes, these programs should be cut, and replaced entirely by the private market. If you don't agree with my anarchist pro-capitalism point of view, then point out how you'd do it.

Secondly, debt is a GOOD thing. Anyone who even moderately understands finance can explain that debt is just the reallocation of future money to present money, so you can spend money you don't have now to do something you want to do now, usually with the idea that whatever you're doing will generate returns, and any returns in excess of the rate you pay on your debt are gains. For example, if you're still following me, one could open a lemonade stand with 100% equity or 10% equity (meaning 90% is financed by debt). Say your lemonade stand costs $100 dollars to open. That means in the first case, you invest $100 and in the latter, $10, with the rest coming from the lender. Now suppose the lender charges 10% annual interest on your loan, to be paid back in 10 years. That means in 10 years you will owe $233.44. Oh boy, how will you ever pay that back?! Now lets say in both cases that every year your company's value grows by 12%. At the end of 10 years, your company is worth $310.58, regardless of the method of financing. What does change, however, is the rate of return on your investment. In the first case, using 100% equity, your return is simply 12%. In the latter case, after having paid back the debt, you're left with $77.15, which annualized represents a 22.7% return on your investment.

Ok, now if you're still with me, we're going to go over the most important part - taking it to infinity. Say your debt is never going to go away - you always owe 10% every year. By the same token, you never sell your business - you always make 12% every year.

Suppose P represents what you keep, g is your growth rate and r is your debt interest rate. E represents the equity in your firm, and D represents the amount of debt.

P is equal to the sum, with t representing times 1 to infinity, of (D+E)(1+g)^t -D(1+r)^t.

Simplifying the equation, we get

P = sum t 1 to infinity ( E(1+g)^t + D((1+g)^t - (1+r)^t)

so, as long as g is greater than or equal to r, taking on debt can only help you.

So what's the United State's growth rate? The growth rate of GDP! So, as long as GDP growth is greater than the interest rate we pay on our debt, we're leveraging up our GDP with debt financing.

real GDP growth over the last 20 years: 5.6797625%

average US debt rate adjusted for inflation: 3%

And that's after a recent recession with interest rates probably going to decrease and with increased inflationary pressure.

QED.