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Afaik US can always pay its debt. It is counterintuitive but: USG (or its agents) are the sole creators of USD. Fed can always create usd to exchange for bonds
by ljosifov 4y ago
Afaik US can always pay its debt. It is counterintuitive but: USG (or its agents) are the sole creators of USD. Fed can always create usd to exchange for bonds as they mature. Other bad things may happen - but not exchanging a bond due for usd in reserve account is not one of them. Unless USG decides willfully to default on a particular bond.