Great Wall of Chinese Debt

So they're coming for us, apparently. And if we don't fix the budget soon, American won't be able to finance a cell phone.

Here is an interesting article with a nice info-graphic regarding the debt. (apparently the graphic was not available in the online article)

Also, here's an article from The New York Times with the ex-head of the FDIC putting into perspective how much better off than the rest of the world we are.
Japan is still sifting through the rubble of it's tsunami and nuclear crisis. European nations that might be better off will still struggle because of the Euro. The failing nations in the Euro zone will have a negative impact on all the countries, and they have little leeway to manipulate their money supply individually.

Comparatively, the US was looking pretty good till this debt ceiling issue came along. Only a third of our debt is foreign owned. Not so bad, in all reality.

So...do we extend the debt ceiling? Do we cut spending? Do we raise taxes?

Well, it's a mess we shouldn't have gotten ourselves into, granted, but if we are currently borrowing money to pay money we owe. But at least people will still invest currency with us, and the plan is to get our situation straightened out once we level off of this economic slump. If we don't allow ourselves more money to borrow now, then we can't keep paying. We'll default. Then less people will give us money, because we aren't good for it. Doesn't sound good.

Should we cut spending? Hrm, fiscal responsibility always is the best option, but we're hurting right now. I'm no economist, but here's a quick lesson in economics. GDP has 4 main factors: consumption, investment government spending, and exports minus imports. If we cut, say, $4 trillion from the spending budget, then that yellow bar up there just gets longer, because our GDP got a lot smaller. Yeah, we could use the money to pay back China and Co., but that wouldn't help out the folks here at home. Some of that government spending is recovered through taxes on the earnings, anyhow. How much depends on tax rates...

So that...should we raise taxes? Lordy lord. Well, honey, all I can say is that money don't grow on trees.