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Relax. The United States could easily pay off its debt if it should be necessary. Inflation makes it cheaper to delay paying it off for as long as possible. The

Relax. The United States could easily pay off its debt if it should be necessary. Inflation makes it cheaper to delay paying it off for as long as possible. There are still debts out there from the 1600s being paid off. In the 2400s, we will likely still see debt from today being paid off, should we be alive somehow. There will be another market crash, it’s not a big deal it happens every so often and life moves on. If there is a war, the size and strength of the US Military virtually guarantees we will win. It’s not so bad. Nothing can touch us.

nostrademons 8y ago
I agree with the points that you did make, but there are significant tail risks that you didn't mention. Historically, the usual failure mode for empires that consistently inflate their currency is that those entrusted with the empire's military might become loyal to those who can pay them with hard assets that don't lose value as soon as they receive them, whether it be foreign currency, Bitcoin, land, or private data that they don't want to become public. Basically, you get warlords and mercenaries, and society reverts to a quasi-feudal system. The risk isn't war in the sense of Great-Power conflicts, it's war in the sense of national disintegration, like what happened in Russia, Venezuela, Yugoslavia, Zaire, Somalia, and Rome.
- redblacktree 8y ago
  This is pretty far fetched. I don't see soldiers demanding gold any time soon when USD still buys lunch and a nice house. Bitcoin? Please.
- supermw 8y ago
  The United States has the greatest reward for those who fight in its military: You are an American hero, a soldier of the greatest most powerful country in the world, and not just because we say so.
csvan 8y ago
Not sure if sarcastic or very much part of the problem. I do hope it is the former.
- supermw 8y ago
  How about neither?
tabtab 8y ago
This assumes the economy and population always grows. If either one of these stop being true, we are left holding a big bag. War, demographics, disease, famine, internet addiction, etc. can derail the pattern. Some amount of debt is okay and takes this into account. But we are overdoing it. Ironically, we could "fix" most our debt by allowing in a larger flow of immigrants. You-know-who would do you-know-what in their pants over such an idea.
- 40acres 8y ago
  If the US economy slows down to such a point where our ability to pay down the debt is compromised, doesn't that signal a much larger problem in the global economy that might lead to our debt being re-configured in such a way that the payment load is reduced?

nostrademons 8y ago

I agree with the points that you did make, but there are significant tail risks that you didn't mention. Historically, the usual failure mode for empires that consistently inflate their currency is that those entrusted with the empire's military might become loyal to those who can pay them with hard assets that don't lose value as soon as they receive them, whether it be foreign currency, Bitcoin, land, or private data that they don't want to become public. Basically, you get warlords and mercenaries, and society reverts to a quasi-feudal system. The risk isn't war in the sense of Great-Power conflicts, it's war in the sense of national disintegration, like what happened in Russia, Venezuela, Yugoslavia, Zaire, Somalia, and Rome.

redblacktree 8y ago
This is pretty far fetched. I don't see soldiers demanding gold any time soon when USD still buys lunch and a nice house. Bitcoin? Please.
supermw 8y ago
The United States has the greatest reward for those who fight in its military: You are an American hero, a soldier of the greatest most powerful country in the world, and not just because we say so.

csvan 8y ago

Not sure if sarcastic or very much part of the problem. I do hope it is the former.

supermw 8y ago
How about neither?

tabtab 8y ago

This assumes the economy and population always grows. If either one of these stop being true, we are left holding a big bag. War, demographics, disease, famine, internet addiction, etc. can derail the pattern. Some amount of debt is okay and takes this into account. But we are overdoing it. Ironically, we could "fix" most our debt by allowing in a larger flow of immigrants. You-know-who would do you-know-what in their pants over such an idea.

40acres 8y ago
If the US economy slows down to such a point where our ability to pay down the debt is compromised, doesn't that signal a much larger problem in the global economy that might lead to our debt being re-configured in such a way that the payment load is reduced?