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Even if they don't raise the debt limit ever, there's no reason for us to default. Our tax revenues can pay for much more than our debt service.
by anonymoushn 15y ago
Even if they don't raise the debt limit ever, there's no reason for us to default. Our tax revenues can pay for much more than our debt service.
- walexander 15y agoRelated to that, most of our debt is owed to the federal reserve, which just makes up money out of thin air for us anyway. Could the federal reserve theoretically give a forbearance on interest payments? The debt owed to the public and international financiers (China,Japan) is fairly insignificant compared to what's owed to the Federal Reserve, and could probably be paid. What happens if we pay everyone except ourselves?