The US government and the US economy are funded by what is basically a kind of Ponzi scheme, if you think about it. At least 70% of the federal debt is actually owed directly to the US citizens themselves. Most Americans have been falsely convince that we owe China this money. The majority of the debt is owed to us, the people.
Much of the spending, actually most, is on military and defense. The reason that we can not reduce military spending at all, and in turn always increase it, is because having an immensely powerful military is our best insurance against going totally bankrupt.
As long as the US military is as powerful and well funded as it is, the US government can continue borrowing vast amounts of money from the people without ever intending to pay it back. The federal deficit is over $25T last I saw, but that number is irrelevant at this point. No one is ever going to demand that the money is paid back.
Obviously, as a private citizen, large debt is a major problem because the government and private companies will always come after you for whatever you owe. They will kill you if necessary. Think about this. If you don't pay your taxes (perhaps you believe that you, as a private citizen, are being grossly overtaxed and that your taxes are being wasted), eventually the IRS will attempt to get their money. If you continue to hold out, at some point it is guaranteed that armed agents will come to your home and attempt to arrest you. If you resist this arrest, you will be forcibly beaten down or shot. For whatever you believe about this, you can not deny that at some point in time, holding out on your debts, even if those debts are being immorally and unethically levied against you, can get you killed and your killers will be rewarded.
For now, because the world operates on the USD and still has what is probably the strongest military in the world, no one can currently come after the US government to collect the debt they owe them.
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