So what happens when the debt can't be paid off?

[BogWalker]

This is something I've been wondering with the sequester coming up probably. What happens when the US can't pay its debt? Will we see some post war Germany style collapse and rebuild, or a Soviet breakup style collapse? When does this happen? Is there some sort of magical debt, or is it just whenever the people we borrowed from decide they want to collect?

 

[miguel]

Easy way out is to print money.

 

[THard6]

you will become China.

 

[Liberty1911]

Argentine economic crisis (1999

1994 economic crisis in Mexico - Wikipedia, the free encyclopedia

Greek government-debt crisis - Wikipedia, the free encyclopedia

 

[Bennettjh]

Easy way out is to print money.

That would have to be a serious printer! I do agree with you though. It's anybody's guess what will actually happen.

 

[THard6]

 

[THard6]

printing money would do nothing but make prices for EVERYTHING go up.
as if they haven't already been on the rise...

 

[BogWalker]

So what decides when we default? Seems like that would be the tipping point.

 

[PistolBob]

That would have to be a serious printer! I do agree with you though. It's anybody's guess what will actually happen.

Not really...just print about 3 of the new 10 Trillion Dollar bills...the ones with Obama on the front and the drunken congress on the back.

Problem solved.

 

[THard6]

So what decides when we default? Seems like that would be the tipping point.

I'm not a pro at any of this.
but what decides this?
well when the ones lending US money decide they are done or have had enough of it.. they will cut us off
then we'll see a big "problem"

 

[netsecurity]

Maybe we will have to give up the Louisiana Purchase to China in order to prevent default. most likely though, I think we will become the next Wiemar Republic and the dollar will be worth about a penny, and in that way all the riches of this country will disappear over night.

I have no doubt that this country is within 10 years of total financial ruin. That's probably why they bought their 2 billion bullets now, because they won't be able to buy them later. It may have been 20 years, or not at all, but Obamacare sealed the deal and buried us in an avalanche of debt that will only grow. I find it disturbing that he refuses to cut spending. It is as if he wants to destroy this nation, as if he is a Russian spy or Islamic terrorist who has been given the keys to the nation, and is burning it to the ground, laughing all the while. Treacherous.

 

[qwerty]

California is worth about 16 trillion....Hate to give up the Oil out there, but love to give up everything else about it.

 

[GodFearinGunTotin]

I'm no pro either so if I get something wrong here, hopefully somebody will correct me. But as I understand it the Fed is the largest buyer of all our new debt. IIRC China hasn't been our largest debtor in several years...We are, kind of like, writing checks to cover bad checks we've already written.

We are in the enviable position that so far, we can continue to dilute existing dollars by "printing" new ones and there are people in the world that are still willing to take them in trade for goods and services. At some point, and if gas prices are any indication it's already began, sellers will begin to demand more of those diluted dollars in exchange. We are probably already experiencing the collapse. Probably the only thing restraining an all out collapse it the fact there's no other game in town--market/economy wise.

 

[actaeon277]

The whole premise of the dollar, is faith that it is worth something.
It really isn't, you can't eat it or make power from it etc.
It was a way to replace barter.
I'll trade those shoes for this chicken.
But, its kinda difficult to do lots of transactions with chickens.
So money was developed. It "represents" a unit of work, or a unit of value.
It has value, as long as people think it has value.
If the debt gets to high, people stop lending, transactions become fewer, faith is lost in the dollar.

 

[Dj15802]

The US will simply elect more libs who will find a way to borrow enough money to pay for the entitlement members of society. The rest of us are screwed.

 

[Scarecrow]

In a nutshell, we will declare bankruptcy. We will then be England. Quite simple actually.

 

[9mmfan]

Bake sale anyone?

 

[Darral27]

If anybody has been paying attention just check the exchange rates over the last 10 years. This did start under Bush. It has continued ever since. Prices are not simply going up. Our money has been steadily loosing value. Many other countries are no longer using our currency for trade. Which is what gave it it's value in the first place. Now the more we print the less it is worth. We are on a fast road to collapse. That is why state's like North Dakota are printing their own money. The Federal Reserve note will not make it.

 

[mike8170]

Disclaimer, just my opinion:

When citizens make (or are given less) and basic subsistence cost more due to de-valuation of the dollar, and there are cuts in every sector of the economy forcing a do more for less philosophy the nation will move closer to a barter system just for individual survival. We will also see the TRUE zombie apocalypse until society reaches a balance that is sustainable. It has already started with the sequester, 800k DOD (alone) civilian employees are going to be furloughed for 1 day per week, yet given an IOU for that day missed, until a deal is reached to pay them for that day missed. Guess what, another example of dumba**es in Washinton just wasting more money, and driving us further to the brink.

 

[LEaSH]

Pretty soon Canada will be making jokes about OUR currency exchange rate. I just don't know how I'm going to handle that.

Syrup suckers.