0
2

[–] ScientiaPotentia 0 points 2 points (+2|-0) ago 

Here is something the authors of this haven't considered. WE CAN BUY BACK THE DEBT AT AN EXTREME DISCOUNT!

0
1

[–] carnold03 [S] 0 points 1 points (+1|-0) ago 

...Especially if the plan is to maintain the $ as the world reserve currency.

0
1

[–] AmaleksHairyAss 0 points 1 points (+1|-0) ago  (edited ago)

Here are the real numbers. As sovereign ownership of US debt is declining foreign individuals are picking it up. The US would have to suffer a major catastrophe on the level of Yellowstone blowing off, losing a world war, or a big, big, depression for the dollar to become the kind of risk they're projecting in the article. And as long as it's a good buy US debt will keep selling.

0
1

[–] solar_flare 0 points 1 points (+1|-0) ago 

Thanks Obama

0
0

[–] ngrngrchickndinner 0 points 0 points (+0|-0) ago 

I'm not politically knowledgeable or economically knowledgeable but what is stopping america from saying too bay we wont pay and maintaining the $ with military might?

0
0

[–] carnold03 [S] 0 points 0 points (+0|-0) ago 

The worlds economy is kept going by trust in credit ratings, more so than actual money. Every person, business, bank, school, and government has a credit rating and if you've got a bad credit rating, no one is comfortable making a loan to you. Right now the dollar is getting stronger. This is bad for international trade because imported goods and services were already slowing down before that, but a good opportunity for foreign central banks holding US debt to offer to sell that debt back to the US central bank at a discount.

It's like a collection agency agreeing to forgive that ten million dollar loan you defaulted on over a decade ago. They bought that debt from your bank for a hundred dollars and you agreeing to pay them a thousand dollars means significant profit for them. The dollar is strong and it makes sense to have the US buy that debt back at a significant discount. In the case of China, they've also got billions of physical dollars in inventory as well. They're working to make the US dollar their reserve currency and many other countries may follow suit as their own economies continues to slow down.

0
0

[–] ngrngrchickndinner 0 points 0 points (+0|-0) ago 

Why not just pull a germany and say no debts will be payed

0
0

[–] Titus-of-Voat 0 points 0 points (+0|-0) ago 

Maybe being 20 trillion in debt isn't a good idea....