There are consequences to having high debt, yes, but you have to look at it relatively. Debt only becomes an issue when your investors don't think you'll be able to pay your bills. The US bonds and their rates are still the threshold for setting the baseline (I.e. The risk-free rate of return) because 'investors' still haven't lost faith in our gov'ts ability to pay it's bills. We had a surplus prior to Bush, and after chasing Bin Laden for a decade with nothing to show for it, along with bailing out Wall Street so they don't fall on their asses without their golden parachutes, we ARE in a period of financial pain and on a path of an unsustainable financial future. Changes will need to be made, for sure, but this is akin to you getting rocked with unplanned medical expenses one year and having trouble paying your 30yr mortgage. You'll adjust, get your finances back on track, and pay your mortgage company - they know it's just a temporary issue.