[sickoflibs]

RE :”We'll come to why that's not happening, but let's consider first why we should regard our predicaments as gravely as any private company does on the path to bankruptcy. “

Since we print out own money and loan it to ourselves bankruptcy isn't possible.

Its just like the SS trust fund. We can cut FICA/SS payroll taxes when SS is already running deficits and it still is called 'fully funded as far as the eye can see'.

[babygene]

“Since we print out own money and loan it to ourselves bankruptcy isn’t possible.”

But hyperinflation is... And that’s worse.

[muawiyah]

SS isn't actually running deficits ~ the US government is running deficits.

But that's neither here nor there. We have a situation where the federal government can borrow virtually unlimited amounts from foreign sources interested in putting their money in our hands simply to protect its value.

We aren't really paying that much interest on it.

Remember, in normal times interest is an attractant but in times like these fear causes people with money to protect it from their own governments by handing it over to us.

That's been going on for most of two centuries!

[cymbeline]

“Since we print out own money and loan it to ourselves ...”

When our government “prints money”, is that money always distributed in the form of loans, meaning the loans are intended to be paid back, which would remove the “printed money” from the economy?

If that’s the case then my next question is how are the interest rates on the loans determined?

If anyone posts answers to these questions, please don’t use the terms “bond”, “note” or any other word that basically means “loan”.

[PeterPrinciple]

Since we print out own money and loan it to ourselves bankruptcy isn’t possible.

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The model is the USSR. We woke up one morning and they were out of business. Thus is our future also.....................