This question keeps on popping in my head every time I hear the Fed or the government (one and the same) printing money or borrowing money to keep the government running. The latest one is the Fed printing (or buying whatever you want to call it) more than 600 billion to keep the long term interest rates low and keep the flow of easy money going. The same is happening in Europe where the fund of more than 1 trillion is established on top of other debt to bail out heavily indebted countries in that region. But back to the U.S. and the same question again. Can you keep on borrowing money and piling on debt upon debt without even making a dent in our principal amount?
If you were an individual household (or person) you would be very nervous adding more debt than your current income and anyway lenders would demand some form of higher interest or collateral to give you some loan to delay your eventual demise (or bankruptcy). We have not reached that point yet but slowly and surely the more we print (or borrow) money to resolve this recession, the more we would in debt in later years and the interest rates will definitely go higher ( no matter what top economists say otherwise). Both our political parties show concern for the public consumption but they seem incapable of solving this debt crises and try to keep their head in the sand for the next generation of politicians to take care of it (which is just a way of ducking the inevitable in the way of higher interest rates).