Believe it or not, U.S. debt was once a source of national strength, before it became a sword of Damocles hanging over the federal government and the bond market.
While the nation celebrates the 250th anniversary of the Declaration of Independence, the origin of U.S. financial might can be traced back to a controversial decision in 1790 to consolidate debts from the Revolutionary War.
Alexander Hamilton, who served as the first Treasury Secretary, is considered the architect of American finance as he engineered one of the most consequential economic decisions in early U.S. history.
He recognized how debt can unlock resources that could transform the young republic. But first he had to untangle the mess created by the…