“We heard the same thing about Iceland, which is now one of the happiest and most peaceful places in the world.
Renouncing unpayable debt is not suicide, because its the banks that die, not the debtors.”
But Iceland is does not hold the world’s trading currency, we do. So if we were to default, it would be catastrophic to the world’s economy and ours.
We will not default, and we will control interest rates by buying up our own debt by the Fed. Devalues the dollar, but the Fed can play that game for a long time.
Good point.