Sooner or later the US is going to default. Assuming 50 million actual taxpayers in the country, the current national debt works out to $340,000 per taxpayer, and that is without considering future interest. The real number is well over $1,000,000 after interest.
Given that there is no way to pay that back, it is a foregone conclusion that the US will go into default sometime in the not too distant future.
Thank you Barry for doubling the national debt – while demoralizing the country. At least you managed to wreck the coal industry in the process.
This is true. Obama would like to blame it on the “terrorist” tea party who are the ones actually trying to stop it from happening.
The US doesn’t have to default, it can money print. There is huge international demand for US dollars, especially in second and third world countries. So those nations will find the US lifestyle for a while longer.
find = fund
As I said, the US will default in the not too distant future.
if Argentina got away at 30c to the dollar, the US can default at 1c to the dollar. Your figure should be 10,000$ 😉
Cement industry too is being wrecked.
We will probably see hyper inflation as our form of default. The government under Obama will print up tillions of dollars, dilute the system and then pay off the debt with phony, worthless dollars.
Making everything I’ve worked for worthless.
In that scenario money will be worthless or near worthless, Assets will still be worth something. People need homes, etc.
The debt is easily fixable. But it won’t be.
Contraction of the federal government to what was intended by the Constitution would result in great growth of the economy. $16T debt in a $50T economy would be trivial.
Washington fixing to contract? Uhhh . . . no, they are expanding.
I think you are correct as there is no reason to cease stealing from producers and savers at this point. The dollar is only worth a few cents compared to what it used to be a 100 years ago. This trend will continue more or less, interrupted rarely by periods of deflation.
Suyts came to a different conclusion. According to his reading of the 14th Amendment, defaulting would be unconstitutional.
My take is that inflating our way out of the debt would be a different ball of wax. Does anyone else remember the Carter presidency?
We could accomplish this with a large increase in federal taxes. But that scenario would not be a bowl of cherries either — especially during our current hard economic times.
Please do some research on the Laffer Curve.
Let’s tax our way to prosperity. Laffer has the right formula.
The U.S. will just have to sell off some assets.
e.g. New York!
The coal industry will do fine after a crash. At least they have a product that is worth something by keeping your house warm or your lights on. Apple and Abercrombie & Fitch on the other hand … tough luck for them.