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You realize the US is also continuously making good on its debts, right? While the gross number grows, it isn't the same debt outstanding.
by whateveracct 3y ago
You realize the US is also continuously making good on its debts, right? While the gross number grows, it isn't the same debt outstanding.
- drexlspivey 3y agoYes it issues a new bond/note to pay the one that is expiring. What is your point?
- whateveracct 3y agoAnd people keep buying them (loaning the US money)..and get interest paid in full. And the US does more than just pay loans back by taking out other loans.
- arcastroe 3y agoThat's not particularly impressive. Anyone can take out a new loan to cover an old loan.
- whateveracct 3y agoActually, people who give out loans tend to give them out to people who they think can pay them back. You or I can't just stack loans for decades. Fundamentally due to interest - you have to pay back people more than they gave you. So just stacking loans to pay loans isn't sustainable. And the US observably does way more with the "loans" they take out than just pay back other loans. Put another way - if you buy a T-Bill (or other US-backed security aka a source of this debt), what is your confidence that you will get paid on time? I'm assuming very high. But if the US's debt was unsustainable, at some point the house of cards has to come crashing down, right?