I guess whether you consider it a good or bad thing depends on which side of the economic reality fence you live on. War is peace, Freedom is slavery, Ignorance is strength...Debt is prosperity?

Kicking the can down the road is always more attractive until you reach the end of the line.

Former Comptroller General of the United States:

Understanding the Debt Problem - Explained by David M. Walker

Former Director of the Office of Management and Budget:

Debt Doesn't Matter? When It Implodes There Are Casualties…….Everywhere

So you see, government debts don’t matter, because they never pay them off. They just borrow more. But wait. Is it that simple? Some people owe. Some are owed. Does it matter who is owed what by whom?

You bet it does.

It’s easier to pay off a little debt than to pay off a lot. So, the more you are owed, the less likely it is that you’ll get paid. Keep adding debt, and the likelihood of getting paid sinks to zero.

Then the creditors take a loss. You may say it doesn't matter, because for every loss taken by the creditor the debtor benefits. But he’s already spent the money; it’s gone.

Alas, this is the same money the creditors were hoping to spend. They are people too – with bills to pay, retirements to finance and insurance, pension, lifestyle, health-care obligations. In short, people who are counting on the money.

Professor of Law & Business at Duke University School of Law:

Understanding the dangers of a debt default

Although the U.S. government has technically defaulted on its debt in the past, his paper explains why such a default today would be much more devastating. Indeed, because almost half of U.S. debt is currently held by foreign investors, even the threat of a default could undermine the nation’s creditworthiness.