But we need a strict budget and loosened government outlook to make this work out. It is a common misconception to think that stronger hold of government can pay off debt so that tax moneys and restrictions can be used to pay off debt. Well as we've seen in the past 5 years that doesn't work too well.
Without any reductions in funding, then US government, with one trillion in savings on top of a balanced budget could pay off the entire debt. Without any debt and a budget surplus the government could provide for a public health care system where precedence is given to Privately insured individuals.
According to Alexander Hamilton, National debt is a good thing in order to help a nation survive. I do agree that the US should pay off some of its debt, but not all of it. You see if a nation disappears of the face of the world so does its debt. Thus meaning if the US vanished then all the money it owes the world goes away. So you can see other nations like China and Russia wouldn't want the US to go away due to the large amount of money the US owes them.
The debt is all Bush's fault anyway. His policies never caused the debt to go down at all. In fact Clinton payed off the entire debt, and Bush added 15 trillion dollars in only four years! Is we became communist, instead of the greedy Wall Street bankers, everyone would live in harmony, peace, and we would pay off the debt in no time.
The only way to retire all US Federal debt (both interest bearing & non-interest bearing) would be to exchange all interest bearing debt for non-interest bearing debt (USD) and then collect every last dollar of it in taxes.
This would drain the economy of all government money and there would be no currency notes/coins in existence.
People would have no money in their pockets & would be unable to withdraw any money from their bank accounts.
The payment system would collapse and the economy would default.
Public Sector + Private Sector + Foreign Sector = 0
It's basically "impossible" to repay all our debt. (On the way to 18 trillion but if you calculate Medicare, Medicaid, Food Stamp and Welfare expenses it would soar all the way to 75 T.) If we were to pay a dollar every second to rid our debt, it would take more than 158,000 years to pay it off. America is ruined and we all know it.