How can a debt be cancelled just like that? Tell all the creditors that the USA is not going to repay all its debts and going to cancel it? That is defaulting, declaring bankrupt and committing daylight banditry. Now, I believe all creditors of USA, including foreign holders, will just say thank you. And they will continue to buy US$ treasuries and investments after the reset.
Wait a minute, about 70% of that US$39 trillion debts are held by the Fed, USA big banks, hedge funds, pension funds and ordinary USA citizens. Now, that makes it really interesting, and I am sure it is all for the good of the country. I am sure USA pensioners and citizens are willing to make the ultimate sacrifice. Having said that, it means the US$ hegemony is gone the way of the dodo bird. And anything trotted out by the USA in future is no longer triple A stuff anymore, maybe just triple junk status, so who is going to buy them. And unlimited money printing is out of the question, as that printed money is as worthless as real toilet papers. At least toilet papers have its use, and an important use.
I am not an economist or expert, but if someone owes you money, you are damn sure going to make every effort to get your money back, not to talk about lending more money to that someone. Let us see if the USA financial wizards, or conmen, really have a way to wriggle its way out of the conundrum.
Anonymous
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