This line I see on the Internet with the excuse that government cannot go bankrupt is complete rubbish. This is what you are implying with differentiating the i

This line I see on the Internet with the excuse that government cannot go bankrupt is complete rubbish. This is what you are implying with differentiating the issuer with the user. The only reason the US is able to print money is because it is a de facto world currency. How many years do you think it takes to replace a de facto currency for international trade? Not many. Russia and China are already trading in their own currencies instead of the USD. I'm sure Brazil wants to follow. There are some political thinkers who theorize that the Libyan and Iraqi wars are meant to prop up the dollar. The Libyan dictator wants a gold-backed currency for Africa and Iraq and Iran want(ed) to trade in Euros. I think the Libyan connection is pretty far fetched but I am not in the know so who really knows? If any of those transitions had happened 10 years ago, the USD would be severely diminished today, reducing the power of the US. Less countries would need the currency and I believe you would see even more real inflation. So yes, the government of the US can effectively go bankrupt if no one wants the currency anymore. And that includes its own people. It happened in the Great Depression because some people realized it was the money system that was a large cause of the depression. The wild card? That the US actually embarks on the "Everyone must use USD or end up like those other guys" rampage. For what it's worth, I hold a shitload of USD-denominated assets because I believe in the American system more than any other. But man, that belief being tested hard these days...