3 ms·

Being in debt just means one owes money. The US government has assets and various investments. Being bankrupt is when you can't pay back your debt, which the US

Being in debt just means one owes money. The US government has assets and various investments. Being bankrupt is when you can't pay back your debt, which the US most likely will be able to do.

ctdonath 12y ago
Going from 50% deficit spending to paying off equivalent of 100% of GDP (which enjoys a 2-5% annual growth) amounts to "won't be able to". We'd have to cut spending by 1/3rd just to stop increasing the debt. We'd have to route all federal revenue to debt for 5 years to pay it off. Ain't happening.
- beeworker 12y ago
  Ah, but most of the US debt is denominated in US currency... It's a convenient loophole to use if it ever becomes a more serious problem.
  - ctdonath 12y ago
    Problem there is: there's only $4T in actual currency, but $18T in federal debt.
    - stolio 12y ago
      It's not like we'd have to print more gold.
  - SilasX 12y ago
    Yes, if tanking your own currency, probably bringing down the economy and starting a panic, counts as convenient.