s Impossible For The US To Default

[Dovahkiin]

Everybody needs to realize this.
It Is Impossible For The US To Default

With so many economic, political, and social problems facing us today, there is little point in focusing attention on something that is not one. The false fear of which I speak is the chance of US debt default. There is no need to speculate on what that likelihood is, I can give you the exact number:

there is 0% chance that the US will be forced to default on the debt.

We could choose to do so, just as a person trapped in a warehouse full of food could choose to starve, but we could never be forced to. This is not a theory or conjecture, it is cold, hard fact. The reason the US could never be forced to default is that every single bit of the debt is owed in the currency that we and only we can issue: dollars. Unlike Greece, we don’t have to try to earn foreign exchange via exports or beg for better terms. There is simply no level of debt we could not repay with a keystroke.

Don’t take my word for it. Here are just a few folks from across the political spectrum and in different walks of life saying the same thing:

“The United States can pay any debt it has because we can always print money to do that. So there is zero probability of default.” Alan Greenspan

“In the case of United States, default is absolutely impossible. All U.S. government debt is denominated in U.S. dollar assets.” Peter Zeihan, Vice President of Analysis for STRATFOR

“In the case of governments boasting monetary sovereignty and debt denominated in its own currency, like the United States (but also Japan and the UK), it is technically impossible to fall into debt default.” Erwan Mahe, European asset allocation and options strategies adviser

“There is never a risk of default for a sovereign nation that issues its own free-floating currency and where its debts are denominated in that currency.” Mike Norman, Chief Economist for John Thomas Financial

“There is no inherent limit on federal expenses and therefore on federal spending…When the U.S. government decides to spend fiat money, it adds to its banking reserve system and when it taxes or borrows (issues Treasury securities) it drains reserves from its banking system. These reserve operations are done solely to maintain the target Federal Funds rate.” Monty Agarwal , managing partner and chief investment officer of MA Managed Futures Fund

“As the sole manufacturer of dollars, whose debt is denominated in dollars, the U.S. government can never become insolvent, i.e., unable to pay its bills. In this sense, the government is not dependent on credit markets to remain operational.” Federal Reserve Bank of St. Louis

“A sovereign government can always make payments as they come due by crediting bank accounts — something recognized by Chairman Ben Bernanke when he said the Fed spends by marking up the size of the reserve accounts of banks.” L. Randall Wray, Professor of Economics at the University of Missouri-Kansas City and a Senior Scholar at the Levy Economics Institute

 

[MisterBeale]

And. . . . what happens when nobody will honor dollars anymore?


When they collapse the dollar and the US doesn't pay it's bills, the game is over.

 

[Correll]

Sure. The US can just print more and more paper money until it is worthless.

And pay their creditors with this worthless "money".

That would, NOT, technically be default.

I'm sure the ruined creditors, and the seniors on fixed incomes would cherish the difference as they try to feed themselves with their little pieces of paper.

Thanks for a great thread.

 

[williepete]

So if we can't default, our credit rating remain AAA forever.

Oh wait.

S&P downgrades U.S. credit rating for first time

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[Dovahkiin]

Juvenile posters don't understand inflation, the debt, or what "default" means. How exciting.

 

[the_human_being]

This simply has to be the dumbest post of the year. The problem arises when China and the other nations quit loaning us money.

 

[SassyIrishLass]

The OP is a Hall Of Shame post.

 

[Correll]

Juvenile posters don't understand inflation, the debt, or what "default" means. How exciting.

Are you referring to your OP?


Cause simply printing up money is not really a good economic policy. YOu do understand that?

 

[williepete]

And the good news is that interest rates will remain low forever and ever so we can just keep on borrowing, printing and spending and never worry about a thing.

Government - Interest Expense on the Debt Outstanding

 

[Dovahkiin]

Juvenile posters don't understand inflation, the debt, or what "default" means. How exciting.

Are you referring to your OP?


Cause simply printing up money is not really a good economic policy. YOu do understand that?

Been working for us for many decades. Funny how it's an issue when Obama is in office..

 

[Dovahkiin]

This simply has to be the dumbest post of the year. The problem arises when China and the other nations quit loaning us money.

Another fool who doesn't understand basic things. China and other nations don't have to "loan us money." We make our own currency, and even if interest rates went up, we'd be able to comfortably pay them off.

 

[Moonglow]

If you gonna ruin your competition, you gotta break a few debt eggs...

 

[Moonglow]

Juvenile posters don't understand inflation, the debt, or what "default" means. How exciting.

Are you referring to your OP?


Cause simply printing up money is not really a good economic policy. YOu do understand that?

Been working for us for many decades. Funny how it's an issue when Obama is in office..

Well we know why..He's not a GOP man...

 

[SassyIrishLass]

This simply has to be the dumbest post of the year. The problem arises when China and the other nations quit loaning us money.

Another fool who doesn't understand basic things. China and other nations don't have to "loan us money." We make our own currency, and even if interest rates went up, we'd be able to comfortably pay them off.

Yo Einstein, what happens when the US prints so many dollars it over supplies the demand? Hint: It becomes worthless

 

[Moonglow]

This simply has to be the dumbest post of the year. The problem arises when China and the other nations quit loaning us money.

Another fool who doesn't understand basic things. China and other nations don't have to "loan us money." We make our own currency, and even if interest rates went up, we'd be able to comfortably pay them off.

Yo Einstein, what happens when the US prints so many dollars it over supplies the demand? Hint: It becomes worthless

Let us know when it becomes worthless....I bet you'd like a stack of Rubles right now, instead of US dollars..

 

[the_human_being]

This simply has to be the dumbest post of the year. The problem arises when China and the other nations quit loaning us money.

Another fool who doesn't understand basic things. China and other nations don't have to "loan us money." We make our own currency, and even if interest rates went up, we'd be able to comfortably pay them off.

Apparently you have zero idea as to exactly how much of our debt is held by the Chinese.

 

[Correll]

Juvenile posters don't understand inflation, the debt, or what "default" means. How exciting.

Are you referring to your OP?


Cause simply printing up money is not really a good economic policy. YOu do understand that?

Been working for us for many decades. Funny how it's an issue when Obama is in office..

SO, not interested in defending your OP or your claim that other posters don't understand stuff?

Is this a "Blame Bush" distraction or more a Personal Attack Race Card thing?

Either way,

Liberals: All the intellectual honesty of a crack whore.

 

[SassyIrishLass]

This simply has to be the dumbest post of the year. The problem arises when China and the other nations quit loaning us money.

Another fool who doesn't understand basic things. China and other nations don't have to "loan us money." We make our own currency, and even if interest rates went up, we'd be able to comfortably pay them off.

Yo Einstein, what happens when the US prints so many dollars it over supplies the demand? Hint: It becomes worthless

Let us know when it becomes worthless....I bet you'd like a stack of Rubles right now, instead of US dollars..

Good grief, runt. Go away, again, you're not funny, you're not clever and pretty much an annoyance. Eventually you shall learn this

 

[williepete]

China and other nations don't have to "loan us money." We make our own currency, and even if interest rates went up, we'd be able to comfortably pay them off.

And fiat currencies have all worked out so well.

“Paper money eventually returns to its intrinsic value – zero.” (Voltaire, 1694-1778 )

 

[Dovahkiin]

This simply has to be the dumbest post of the year. The problem arises when China and the other nations quit loaning us money.

Another fool who doesn't understand basic things. China and other nations don't have to "loan us money." We make our own currency, and even if interest rates went up, we'd be able to comfortably pay them off.

Yo Einstein, what happens when the US prints so many dollars it over supplies the demand? Hint: It becomes worthless

Let us know when it becomes worthless....I bet you'd like a stack of Rubles right now, instead of US dollars..

These fools pretend we're going to print massive amounts of money and directly inject it evenly into the economy.. They don't understand inflation or the debt,