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There's speculation that US will enter a "soft bankruptcy", and will not pay back all, or part of, the 27 trillion.
by zapdrive 6y ago
There's speculation that US will enter a "soft bankruptcy", and will not pay back all, or part of, the 27 trillion.
- sz4kerto 6y agoHow would that make any sense at all? States can't really go bankrupt if their debt is denominated in the currency they control.
- deleted 6y ago[deleted]
- jjoonathan 6y agoLegislative dysfunction knows no bounds.
- rapsey 6y agoMoney does not work that way. The debt literally is money. Paying it back would mean there would be no money.
- howeyc 6y agoThat's not gonna happen. Right now the government/fed essentially "rolls" their debt. They sell $30,000 in treasuries for $29,999, and in 3 months time sell $30,001 in treasuries for $30,000 to buy back the old one. (numbers not to scale, for illustration purposes) This is how the debt increases via the interest rate on treasuries. The more likely "disaster" scenario is instead of "rolling" they just print, buy and don't issue a replacement treasury.