Where Does All The Borrowing Lead?

For some time the US has been borrowing tremendous amounts of money. Not just the government with that massive Reagan and Bush debt from cutting taxes and borrowing instead, but also the huge, vast, massive trade imbalance – that trade deficit where we borrow the money to buy stuff from China.
And the public has been “withdrawing equity” for years – taking out second mortgages to buy nice cars and stuff.
All that borrowing has to lead somewhere. No?
The Daily Reckoning: Welcome to Captivity,

What did you expect? “The borrower is slave to the lender,” it says in the Bible. Welcome to captivity.