Great debate guys!!! There are many ways to analyze the issues and solutions. Assets and liabilities of the Fed government determines the leverage ratio and the cash flow needed to fund the debt. We all remember finance 101. Debt magnifies income and losses. So are we making money or loosing money for last 10 years? Seems like with a $1.5 trillion annual deficit, we just lost a little. If I asked you all for a loan of $4 million over 10 years, the first thing you do is look at what? Collateral, my other debts, quantity and quality of my cash flow. America still has equity, I agree Norm. The amount of our fixed liabilities and dwindling ability to generate income is where we are failing. (Long term) Baby boomer money will run out faster than most expect. We are living off our parent's and grandparent's good fortune as a whole. Macro view.