You must have over dosed on your Kool-Aid.
You mean to say that if we had no debt and a balanced budget our economy would collapse?
Tell me then, once the interest on our debt reaches the point where it consumes more than our revenues then what is your next step. The government would have only one option and that is to keep printing more and more money which then means that our dollar becomes more and more worthless. Maybe you want to take a look at the financial crisis in Argentina, in the 1990's when the peso had an exchange rate of 10,000 to the USD. If that isn't good enough take a look at Zimbabwe. I have a 1 trillion Zimbabwe dollar bill, it is worth about $0.35 in US dollars.
The federal government is constrained in spending, it is just not as constrained as the normal house hold and that is only because the federal government has the power to keep increasing the limits on its credit card.
I did a spread sheet on the national debt based on increases between 2000 and 2010, the rate of increase was 7.4% per year, I also did the same for revenues and interest on the date based on a 10 year average.
Based on my forecast, our national debt would be what was forecast for the end of 2014, our revenues are on track but obviously interest is also ahead of schedule by 2 years.
Using this forecast, interest will begin exceed revenues in 2032 but since I am already ahead of schedule one can only guess what it might be. I guess we will have to look to see when the national debt passes the $19.5 trillion mark, my forecast says the end of 2016 so that means we are only $3 trillion away. I am thinking we hit it much sooner than that
tell me, if money can not be printed ad naseum how the hell has the FED been buying our debt with QE1, 2, 3 etc.. etc.. They have to print it because it can not be spent without congressional approval.