Governments need to live within their means  Ultimately the US Government has to pay its bill just like everyone else. Ultimately maintaining a permanent deficit harms the economy creating both inflationary pressures and effecting interest rates.  However, these pressures are not the main source of concern. Although deficits in times of plenty are a grave concern, during a recession most economist agree that deficits may be necessary. However, the US is no longer ‘mostly in debt to itself’ as has been the case in the past. [i]  Increasingly, its debt is owned by the major Asian economies; especially China. The implications should conflict arise between the two are severe as China, effectively has the capacity to bankrupt the US and the dollar at a time of its own choosing.  [i] John W. Schoen. “Just who Owns the US National Debt?” MSNBC 3 April 2007