I think default is inevitable.
People act like it is “impossible” to default because its so drastic. Well, it’s “impossible” to pay $24T in debt.
The system of debt that the central banks have created is a bad system. Time to sweep it away.
And it just went up another $2 trillion. And there may be another relief package to follow this one as this stretches on.
-AND-
This $26-30 is PAST debt. Money we have already spent, which we didn’t have or won’t have when it is spent. This doesn’t include FUTURE debt, in the form of unfunded liabilities, which is over $100 Trillion, and some say 200, in future spending on social security, medicare and medicaid for the remainder of the baby boomer lifespans...
This is really bad IMHO. What is the answer? What will happen? I see three possibilities;
1). we wake up, and stop all government spending, entitlements, defense and everything else, and start a repayment plan with the tax revenue, and even if this is possible with Stossel’s growth plan, it just isn’t going to happen in this political climate, with this massively undereducated population in regards to economics. They will always vote for more free stuff.
2). Hyperinflation as we come to the point in this spiral, where we can’t even pay the interest on the debt without borrowing. -Buy precious metals, and maybe cryptocurrency. Get use to a gallon of gas costing an amount with a lot of zeros... A new currency system will be the only way to pull out of this possibility, which will mean a huge transfer of wealth to those with the new currency, whatever that is.
3). The Clowerd Pivon effect has come to what Yuri Bezmenov claimed to be the “crisis” stage, and the economic system is in collapse as people on government benefits and fixed incomes discover their couple thousand dollars a month they live on won’t buy a loaf of bread. Social unrest and demands by an economically ignorant population will demand that the government does SOMETHING.
-And they will. The only thing a government can do, which is to use force to restore order, which in this case will mean confiscation of property and wealth, and probably the dissolution of the Constitution of any meaning.
Good luck folks.
Nobody defaults on debt if they can print money.