3 ms·
Indeed. The idea that the US government can go bankrupt is ludicrous on its face (and illegal; see Fourteenth Amendment, Section 4). I can go bankrupt, Musk can
by drweevil 2y ago
Indeed. The idea that the US government can go bankrupt is ludicrous on its face (and illegal; see Fourteenth Amendment, Section 4). I can go bankrupt, Musk can go bankrupt, but the US government simply cannot. It is a sovereign issuer of its own currency. Anyone who makes this claim should not be trusted, as either a liar with an agenda or an ignorant, and ideally should not be allowed anywhere near fiscal policy. So yes, this is about lying to allow the oligarchs to hijack the people's government from them. The ultimate regulatory capture, if you will.
- anovikov 2y agoWell, the point where continuing to incur obligations with no chance of ever repaying them (resulting in escalating interest rates as investors price it in more and more), will become untenable, may arrive. What if debt reaches 200% of GDP? 500%? What kind of interest rate may be required to issue more of it - and issuing more of it is necessary to repay old ones? It may keep debt escalating at a rate that might seem silly and cause an avalanche effect whereas issuing more debt requires paying a higher and higher interest rate - and that interest will cause the debt to self-escalate - in a runaway cycle where process has to end in a year or two with inevitable default. Only good thing about it is that many other countries will arrive to that point sooner thus keeping U.S. in advantageous position still.