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The US can't go insolvent. The fed can could buy the entire debt out tomorrow out of newly created money. Sovereign debt in a country with such central bank is little more than future tax or inflation, but solvency is guaranteed.
But bonds and the Dollar could become nearly worthless
Here's your reminder that this is of course a bunch of alarmist nonsense, because as an issuer of currency the United States is incapable of becoming "insolvent." The authors are from an libertarian extremist think tank that pushes for a balanced budget amendment. If these people got their way, we would immediately solve the problem of people arguing about this on the internet since none of us would be able to afford…
At the macro level, debt is one of the most powerful tools that a government is entrusted to deploy. It's literally how you grow an economy.
I’m not American, and yet I can tell this is extremely unlikely to happen. I’ve lost track of all the Cassandras raising the alarm who were shot down or even laughed at. But there is still a bit more road left for the can to be kicked one more time.
Not a nice timing by the treasury to post this at the same time that many companies fire employees, war is going on, and fuel is running out. Everything is piling up it seems
https://www.youtube.com/watch?v=1JpZZcD8C4M
Meanwhile, let's step back a bit... if we pretend that the US is insolvent - a repo man is going to come take it away with a big truck - do you really think that the US treasury is structured in a way that allows them to hold back something that significant because the national mood is anxious and they don't want to make people feel extra sad on a Monday? Seriously: wth.
The US can't go insolvent. The fed can could buy the entire debt out tomorrow out of newly created money. Sovereign debt in a country with such central bank is little more than future tax or inflation, but solvency is guaranteed.
Don't worry guys, we'll still set aside money to fund wars in deserts far away.
https://en.wikipedia.org/wiki/Military_budget_of_the_United_...
And as you would expect in a Fortune Mag article, the "solution" of this budget shortafall is to fuck the people more.
Reigning in the totally out of control budget for incinerating people should have come long ago, but is unspeakable for major shareholders of the people incineration industry.
Or using the thing that no right-wing talking head is ever going to acknowledge in resolving budget shortfalls, increasing income (i.e. taxes)
This is especially true given the modern massive wealth gap, in which the highest earners pay a fraction of the percentage paid by working people.
Earlier quoted context omitted.
But bonds and the Dollar could become nearly worthless
It didn’t, the last 2-3 times that trillions were printed to sort that moment emergency (thinking in 2008 and 2020, but could be more) and there wasn’t a sudden drop of value then.
Here's your reminder that this is of course a bunch of alarmist nonsense, because as an issuer of currency the United States is incapable of becoming "insolvent." The authors are from an libertarian extremist think tank that pushes for a balanced budget amendment. If these people got their way, we would immediately solve the problem of people arguing about this on the internet since none of us would be able to afford…
Meanwhile,there are in fact actual, bonafide, tangible problems to financial stupidity you're quip forgot to address.