How much debt is too much debt for the United States?

This is a great story from today’s WSJ on current US Treasury auctions and the the worry associated with the U.S. being cut off from the hand that feeds our profligate spending: China. Apparently recent debt issues at the U.S Treasury have gone alright, but as this story describes, Chinese buyers are showing signs that they may be growing weary of our fiscal irresponsibility. And who can blame them? I don’t. I wouldn’t invest in Treasury bills right now.

I think it is becoming clear that the U.S requires debt financing to function; it is structurally integral to how our country is now managed. Not a very good thing.

I am somewhat worried about this. Spending other people’s money won’t go on forever and the day will come when the Chinese fail to show up. U.S. Treasuries will fail at auction for the first time in our nation’s history.

Borrowed time and borrowed money….