If the debt keeps rising, won’t the US have do default at sometime?
But common sense in in shorter supply today.
“If the debt keeps rising, won’t the US have do default at sometime?”
No, the federal government can engage in fairly short spending spikes that cause inflation to rage for years, decreasing the national debt burden of the country. This inflation comes at the expense of millions of mainly old people who can do nothing but accept their impoverishment.
The national debt amount of Joe Biden’s 2023 would buy a lot less than the national debt amount of Donald Trump’s 2018.
The national debt is up about 30% since Trump took office, but prices are up 30% to 100% (~50% on average).
Probably, but the game plan seems to be a “soft default” of just continuing to debase the currency so that we can pay (or at least service) the debt with dollars that are worth much less than when we took on the debt.
“If the debt keeps rising, won’t the US have to default at sometime?”
No, not as long as congress continues to increase it’s borrowing capacity substituting wants for worth. They just change the worth as debts are established at one level and the new debt capacity is re-established so the bills appear to get smaller. They still exist, just at a lower level than any new debts will be established as they are left under the old appearance. If the past debts were raised to the new debt level, they would be astronomical. They only depreciate down, not up. Up doesn’t get people to vote for you because voters pay the difference along with the bill.
wy69