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Don Levit says:

Terrific article.
This refutes many economists who think that because of the dollar, and its use as a world currency, that we are nowhere near the point of losing our creditworthiness.
Well, creditworthiness is based on perception of the masses, who probably don’t have the knowledge of fiat currency, taxation, etc.
People tend to look at government deficits in the only way they know, as households or businesses would run deficits. At some point, it is unsustainable, even for the U.S. Government.
I liked this excerpt from the paper “Government can raise revenues in three ways: taxation, debt, and inflation. To maintain popularity, governmental leaders prefer not to raise explicit taxes, so the preferred method of revenue generation is to borrow and then pay debts back with debased currency. The democratic bias is to concentrate the benefits of public policy on well-organized and well-informed voters in the short run, and disperse the costs of public policy on the ill-organized and uninformed masses in the long run. The least informed and organized interest group at any point of time is future generations.”
This reminds me of how Social Security and Medicare is funded.
I presented this discussion to the Unitarian Universalists last Sunday.
The governmental links and excerpts were pretty revealing, that the trsu funds are no more funded than paying for battleships. UUs are a very liberal bunch, composed primarily of agnostics and atheists. When I asked for a show of hands “Who do you have more faith in, God or the credit of the U.S. Government?”
It was a tie!