So think about what happens when America Can’t borrow anymore.
Forced Government cuts.
At least half of all social program money is immediately gone.
Government jobs mostly gone. Government spending on infrastructure gone.
GDP goes into severe negative territory.
Interest rates to refund government treasuries skyrocket if any buyers can be found at all.
GDP goes into severe negative territory.
Tax revenue goes in the tank.
Government therefore has to cut social programs even more. Riots are happening everywhere.
Citizens and companies go bankrupt.
People are starving and homeless.
The country breaks down and goes bankrupt.
We owe a lot of other countries a lot of money.
That much is given. The only question is what happens then?
Many possibilities. But none of them are likely good.
The possibilities are: Tyranny. A full fledged dictator. Invasion. A UN resolution diving the country up among it debtors.
You don’t get to start over when you have an American populous that is so dumbed down and unaware of what this country even was. When they don’t even understand what this country was formed to be or why.
The only thing that is certain is that it is coming soon.
How soon? What is your estimate?
They can 'kick the can' for a long time. A Black Swan event could hasten the arrival though.
That won't be a problem - the Primary Dealers will always buy at "reasonable" rates, and the Fed will always buy from the Primary Dealers with printed dollars. There will be no "failed" auctions of T-bills.
The problem will be that the curtain will then fall away from the man operating the machine and the dollar will again be "not worth a Continental".