Why doesn't everyone match the US debt level?

[benjamin07]

If someone can please answer this question because I cannot find the answer by myself:

I understand that a two decades ago debt was acceptable because say if China sold to the US and received bonds in return, then they expect these bonds to be honored one day.
It's been one decade now where it's clear that government debt, US or anywhere else, is not borrowing to build new projects that over time will ROI, rather it is bad policies and the incompetents (politicians) who lose the money cannot possibly come up with anything whatsoever to revere the cycle, especially that the pit has become too deep.

So my question is:
Now that everyone knows that government debt is bad money, why do some governments still try to make a surplus in their budget? In my mind, the reasonable thing to do in a world of lunatics is for all to be as lunatic as the most lunatic.

Putin has once criticized the US debt as "they have been long a burden on the world", i.e. borrowing money from other governments and their own people to send a probe near Pluto, so why doesn't Putin do the same and borrow money from whoever still have any to lend and do whatever he wants with it, from feeding his homeless to sending another probe to Pluto.

I'm not saying people should boycot the US because they currency has really no value, instead let's all be at the same level?

What is wrong in the above because obviously it's not happening, China still trying to keep its currency low to remain at the top of the trading game, but what value do they in the money they receive? do they think that one day they will "own" the US via money?

[pitham1]

China manages to keep its large work force employed by keeping the value of its currency low.
Given that it is a developing country, they view this as more important than thinking about the value of the US bonds they hold.

[funkenstein]

Perhaps some of your difficulty in understanding what is going on is that you are ascribing "the US" and "China" as real entities capable of action or intent.  In fact they are labels that real individuals and actors capable of action use as shields for various purposes.  This is well discussed by e.g. Buckinminster Fuller's books describing "England". 

[xhomerx10]

US-backed assets are still seen as safe-havens for investors worldwide and US gov't spending as a percentage of their GDP is lower than most other industrialized nations.  I think your hypothesis is incorrect; US gov't bond (debt) is not "bad" money.  If a Russian had bought and held US bonds over the last decade, they would have increased their holdings by 278% on dollar value exchange alone.  In 2006 you could get a USD for around 28 Rubles.  In 2016 that same USD requires 78 Rubles.  Putin is not in a credible position to lecture on US fiscal policy.

[maku]

It seems that debt as long as partnered with productivity is no problem. From the looks of it, the US won't fall as an economy yet.
US economy will be growing at a 2.7% rate from 2014-18, it is sufficient to keep crisis caused by bloated debt at bay.

[markj113]

the US is not in too good shape -

[mkc]

Perhaps some of your difficulty in understanding what is going on is that you are ascribing "the US" and "China" as real entities capable of action or intent.  In fact they are labels that real individuals and actors capable of action use as shields for various purposes.  This is well discussed by e.g. Buckinminster Fuller's books describing "England". 

I agree with you, USA China are two huge, heavy balls rolling down their trajectory and nobody, not one person can make change to it. Because they are both too big, way to big.
I always think a safe world should divide USA and China into smaller countries. My thinking will make myself a criminal in both countries.

[youdamushi]

ahah!

You don't understand cause you have a too naïve approach.
Why the high debt? Easy, the higher the debts, the higher the control of the banks over government. That's why they continue to lend.
And don't get the things the wrong way, US pay the interests every year! So banks get a huge amount of money from that! And they lend this money again...
It's like you're a drug dealer and you got an unkillable drug addict as a client. Of course you'll lend anything to him, knowing he'll so anything for you. He'll rob the house you decide and give you everything for 5% of its value...