Whats going to happen when America can't borrow anymore money?

suplex3000

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Ok so we're 18 trillion dollars in debt most of which is owed to china. So with the situation in Greece whats going to happen when we can't pay back that debt? I know we are a much bigger country and have a higher GDP but we spend and owe so much money that not even the billions of dollars the government collects in tax is enough , so we end up borrowing more and printing more money which is decreasing the value of the dollar if I'm not wrong. So my question is whats going to happen when we cant borrow anymore money, is the economy going to tank?

ps
What i meant about china is that out of all the countries we owe them the most most money I know that most of our debt is owed to ourselves and how come they say that the coming economic collapse is gonna be 10x worse than the great depression
 

Big Black Dog

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We will go belly up and become just another third world country.
 

occupied

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People, companies, and countries line up to loan us money. Many have the vision of America somehow going to these various lenders and asking for money but the reality is that we sell every bond we create and we do not issue enough to keep up with demand. In answer to the OP, if America's credit ends up bad for some reason I cannot even imagine, it will be because the rest of the world is in far worse shape. Our debt is worrisome but America has still paid every bond ever legally issued in it's name and never really came close to default, not even when republicans did their government shutdown stunt.
 

Rozman

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The left will say it happened because we didn't spend enough...
 

Rozman

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Go after and confiscate our IRA and 401 k plans....
After all it will be for the greater good.
 

Toddsterpatriot

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Ok so we're 18 trillion dollars in debt most of which is owed to china. So with the situation in Greece whats going to happen when we can't pay back that debt? I know we are a much bigger country and have a higher GDP but we spend and owe so much money that not even the billions of dollars the government collects in tax is enough , so we end up borrowing more and printing more money which is decreasing the value of the dollar if I'm not wrong. So my question is whats going to happen when we cant borrow anymore money, is the economy going to tank?

ps
What i meant about china is that out of all the countries we owe them the most most money I know that most of our debt is owed to ourselves and how come they say that the coming economic collapse is gonna be 10x worse than the great depression
most of which is owed to china.

Unique definition of most.
 

Missouri_Mike

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The myth is we are borrowing all that money. We aren't borrowing as much as we're just writing ourselves IOU's and printing what we just borrowed from ourselves. The only thing that keeps us afloat is being thee worlds trading currency. If that stops we're fucked.
 

Rexx Taylor

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just wait till the 47% find out that there is no more money to print. awe, should of voted for Romney!
 

Rexx Taylor

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why dont we just cut the country in half. The Dumb/Lazy can have the northern half and starve to death, and the working class can have the south.
 

Missouri_Mike

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why dont we just cut the country in half. The Dumb/Lazy can have the northern half and starve to death, and the working class can have the south.
Depends on where Missouri falls with that line. I think a better option is Cut the left and East coasts out. We can handle the couple retard states in the middle with some tough love.
 

Rexx Taylor

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why dont we just cut the country in half. The Dumb/Lazy can have the northern half and starve to death, and the working class can have the south.
Depends on where Missouri falls with that line. I think a better option is Cut the left and East coasts out. We can handle the couple retard states in the middle with some tough love.
maybe we can sell California,New York,Michigan and Illinois to China for 18 Trillion? oh wait, those states are only worth about 500 Billion. Never Mind.
 

SwimExpert

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so we end up borrowing more and printing more money which is decreasing the value of the dollar if I'm not wrong.
You are wrong. The vast majority of money in the American economy is entirely theoretical. It only exists on ledgers. With a GDP of nearly $17 trillion, less than $1.5 trillion hard cash exists in circulation.

In modern times, printing currency does not lead to deflation, because the supply of money exceeds the supply of currency.
 

Missouri_Mike

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so we end up borrowing more and printing more money which is decreasing the value of the dollar if I'm not wrong.
You are wrong. The vast majority of money in the American economy is entirely theoretical. It only exists on ledgers. With a GDP of nearly $17 trillion, less than $1.5 trillion hard cash exists in circulation.

In modern times, printing currency does not lead to deflation, because the supply of money exceeds the supply of currency.
Umm, what?
 

SwimExpert

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so we end up borrowing more and printing more money which is decreasing the value of the dollar if I'm not wrong.
You are wrong. The vast majority of money in the American economy is entirely theoretical. It only exists on ledgers. With a GDP of nearly $17 trillion, less than $1.5 trillion hard cash exists in circulation.

In modern times, printing currency does not lead to deflation, because the supply of money exceeds the supply of currency.
Umm, what?
The US economy has nearly $17 trillion worth of money. However, less than $1.5 trillion worth of cash is in circulation. Most of the money supply in the US economy exists as bank money. That is, it exists only in the records of the bank. So, the printing of currency does not inherently create new money.

The only way that printing more currency will cause devaluation of money is if there is a significant discrepancy between the increase of hard currency relative to the increase in the size of the economy, specifically if there is a significant excess in the amount of hard currency printed. Fortunately this is not likely to happen because the amount of new currency printed is strictly regulated by statute, and has been for a very long time. So the whole thing is pretty much hands off.

During the 2012 debt ceiling fiasco the idea of the US Mint striking two $1 trillion platinum coins came up, due to the fact that the minting of platinum coins is not subject to the kind of statutory limitations that apply to most other hard currency. There is still much to debate as to whether even this much additional hard currency (which would more than double the amount of hard currency in the economy) would contribute significantly to inflation.
 

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