I believe that there’s a clear distinction in debt at the sovereign level: a country is thriving or a country is stagnant. For a country that is thriving, especially on innovation, debt becomes just a function of innovation that improving lives on a continuous basis. Under this framework, there is no reason to stop. The opposite is true for a stagnant country.

Here’s a clear way to see this:

I’d rather own bonds in a country with a quadrillion in debt and warp-speed engines than one with no debt and rotary phones.

Let’s go deeper:

A country could have $8 bazillion in debt, but if it’s first to mine a nearby asteroid full of precious metals or builds unstoppable military tech, that debt becomes irrelevant. Every breakthrough returns value—resources, influence, or security—far beyond the number printed on a balance sheet. More importantly, that innovation can be used in ways that spark growth whenever needed.

Sovereign debt is unique. It’s often just money we owe ourselves, and repayment terms are entirely flexible. Strategic capabilities can make that debt feel like nothing. Remember: country debt is owed to oneself. It can be paid back as needed, over time. There is no better kind of loan.

Another way to see it: if the government ever posts just $1 in profit, it could pay off $37 trillion over 37 trillion years. No one can complain—especially if that country is pushing boundaries and doing something remarkable in innovation, growth or tech.

The future belongs to innovators, not balance sheets.

Bond markets need to remember this.