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The only way that can happen would be for Congress to willfully choose not to pay. You literally can't run out of money as long as you lend in the same currency
by yxhuvud 7y ago
The only way that can happen would be for Congress to willfully choose not to pay. You literally can't run out of money as long as you lend in the same currency you control the supply of.
- nradov 7y agoYes Congress would choose not to pay, just like Russia and other countries have done in that situation. It's the least bad option.
- AstralStorm 7y agoWorldwide debt forgiveness? That'd be a first. Interesting to see. However, every country will try to eke out some advantage in this. War, economic and otherwise, is not out of question. But if taxpayers say no...
- nradov 7y agoThere would be no debt forgiveness involved. It would be a forced cram down imposed on bondholders against their will.
- AstralStorm 7y agoSure, but this would only work on private debt. Countries tend to shrug it off or get involved if said massive debt is related to their economy - e.g. China.
- nradov 7y agoNo that's incorrect. All bondholders would be subject to the same terms. China has no power to enforce anything different.