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Yes and no. US can just print more dollars and pay its debt, which it is doing since Nixon. It doesn't need to default on its debt ever, as long as USD is the r
by bgnn 1y ago
Yes and no. US can just print more dollars and pay its debt, which it is doing since Nixon. It doesn't need to default on its debt ever, as long as USD is the reserve currency. Of course the rate rhis happens is a delicate thing. Too quick devaluation would upset the debtors. Though they own so much of US debt (like China owns 2 trillion dollars or sth) that they are incentivizes to play along.
- XorNot 1y agoMost US debt is still owned by the US though: 79% is owed to domestic holders[1] [1] https://www.pgpf.org/article/the-federal-government-has-borrowed-trillions-but-who-owns-all-that-debt/ https://www.pgpf.org/article/the-federal-government-has-borr...