The problem is millions of those creditors are Americans, like those owning US Savings Bonds, military retirees, civilian retirees, those who paid into social security and medicare. No, a total default would be a very bad idea that would certainly bring about a violent revolution.
Please post your solution.
It seems like we’re getting closer and closer to that inevitably happening.
I’m a young guy, and I see plenty of angry young guys these days. I fear that it’s only a matter of time before we become Weimar Germany and people take to the streets.
God help us if it happens.
No, the bulk of the debt issued these days is purchased by the Federal reserve. Private individuals who own that debt should read the writing on the wall and cash out while they can.
Repudiation and/or default are coming. Its the timing and form of that repudiation that are in question.
Have you noticed that the media doesn’t even dare to utter the word “default”?
Or when the word is mentioned, it is preceded by the word “disastrous” or “cataclysmic.”
The reason why default is never mentioned as a possibility by the Socialist media, is because default will destroy U.S. gubmint credit, making it impossible for gubmint to borrow. (Maybe) It would force balanced budgets for a generation?
Socialists prefer inflation, which is disguised taxation, or even austerity. But a Keynesian’s worst nightmare is a government unable to borrow money.