And its not really about how much one owes in this world.. Its about two things: 1) Is there a cap on what a lender will lend? and 2) Is there a time a creditor will ever call in its debts?
Let us say that China decided tomorrow no longer to lend money to the US.. enough was enough... too risky etc... What happens? We don't mean in academic terms of proper money management, but reality-- what happens if the spigot of money is cut off to the US?
Everyone made a big deal in 1984 when Reagan expanded the US debt to its first Trillion.. then we passed the $5 Trillion mark..and the $10 and the $15.. and really, has any creditor called in their loans yet??
If it was an individual who owed so much to others, or a small nation with a weak military like most of Eastern Europe, Africa and South America, then that entity would be in Severe trouble.