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As long as they can continue making interest payments on the debt then what's the problem? It's all relative.
by 2OEH8eoCRo0 4y ago
As long as they can continue making interest payments on the debt then what's the problem? It's all relative.
- lotsofpulp 4y agoWhich the feds can always do since they can issue money. The relevant question is can the US continue producing goods and services that are desirable on a global scale, one of which is a trustworthy society where you can mostly depend on the judicial system keeping things in order, for better or for worse.
- Ekaros 4y agoAnd more importantly will others keep accepting USD. Or will they expect to be settled in something else be it other currency or some commodity. If others start to want something else than USD things can go sideways.
- scottiebarnes 4y agoThe problem is the fundamentals. The US will "never default on its debt" because it issues debt in its own currency, which it can control the creation of necessary to service that debt (money printer go brrrr). So nobody is ever concerned about debt; you just say screw it let someone else worry about it, usually future generations. The value has to come from somewhere, and in this case its from the debasement of the dollar.
- notch898a 4y agoThey defaulted when they stopped honoring gold backing, which was the debt against the legal tender.