It is when your debt is approaching 100% of your GDP and you owe 40% of it to yourself. Think about it. If GDP and our Debt are roughly equal how is 1 or 2% a year increase in revenue going to be able to pay 40% + interest of debt?

10 year Treasury interest rate: 3%

interest on 40% of GDP: 1.2% of GDP

QED.

Self = same economic system/country. Or would you have America writing off loans from American citizens?

Unless spending also rises by 1-2% of GDP.

http://reason.com/archives/2011/02/14/the-19-percent-solutio...