What Would Happen If USA Stopped Paying Its Debt?
That's quite scary..
Most of the debt is held by US citizens, not foreign sovereigns.
Luckily I don’t live in America.
Remember Germany post First World War ? That would happen .
What's scary is it will impact everybody, but it'll destroy the US, and Russia and China will take the United States place. The European union will have to become a sort of federation with a single army, so we'll have 3 major players on the world stage. My bet is on Europe as it's got more money than Russia and China, but who knows what might change in 30 years.
UB3RFR3NZY China maybe ? EU ? Again maybe . But Russia , not really .
Deutsch Mark was not a world currency, but the American dollar is a trading currency which America can print - quantitative easing - at will, America will use it for payments, regardless of its value - take it or leave it.
Printin money to pay for debt... sound familiar.
The person who said that they wouldn't default because they can always print more money is not dumb. He's actually right. The US owes this debt in US dollars. The dollar would definitely lose its value though. Its an advantage that US has because of the dollar accepted everywhere.
If you print money the value of the currency will drop
it would ruin the dollar but it would still work for paying the debt. if a 100 dollars are worth 1 euro it would still count as paying back cuz the debt is in dollars.
Not so much, the dollar is the world reserve currency. Meaning dollars will always be in demand, as needed to buy oil, gas and other resources.
ALL THE TIME
it's will never drop. USA start war every time the currency start losing value and robbing other country in the name of freedom and fighting for a safe world
"Bonds are safe." "The USA will never default on it's debt."
Hmmmm.... If you were a bank and somebody continued to rack up debt and barely if ever paid down any of the principle, would you continue to lend to them?? Eventually we'll need to get this debt under control or else it WILL destroy us. In the short and medium term, bonds are pretty safe. Long term?? HELL NAW. We need to fix this shit. The Rethuglican tax cuts are antithetical to paying down the debts.
Both parties suck at paying down the debt because they both want to increase spending.
the US has problems of war and spreading it's military, that requires a lot of tax money to maintain these unnecessary military bases all around the globe, the funny is you can't ask other countries to fund US military base in their country because we all know the answer: "Get the F*ck OUT" so what the F Americans! are you going to start spending your Tax money on your won lives? it's better then sending 130 million dollar missiles with no reasons other than a firework over Syria.
Keep printing more and more dollars. Go to war. Make nuclear Bombs and missiles as much as possible. Help ISIS and terrorists around the globe while accusing others for doing such. People around the world watching.