RE: We are on our way to becoming Greece. Trump is the cure.
If the cure is to default on our debts, be prepared for soaring interest rates and a devalued dollar. It would undermine confidence in the world’s most trusted financial asset — our currency.
Even a partial default would mean that tax dollars would have to go toward repaying the debt.
Of course, Many investors would shift their money elsewhere. And the economy could endure a traumatic blow.
And if you have a conservative 401K that invests in treasuries ( as most of those who are close to retiring have ), your portfolio will be devastated.
This will also be historically unprecedented. The move would end a policy introduced during the presidency of George Washington — and celebrated in the Pulitzer Prize-winning Broadway musical “Hamilton”— to pay full face value on the debts incurred by the country.
The government’s unfailing payments of its debt have long pleased investors and supported the economy because the country can borrow at lower rates than it otherwise could.
Defaulting on our debt would cause creditors to rightly question the ‘full faith’ commitment we make.
No, wouldn’t cause inflation in the least. We are in a mass deflationary mode. QE1 and QE2 didn’t even move the dials.
The problem with your answer is that you are using facts and logic. Facts and logic are irrelevant to the people you are trying to convince.
There's no reason to default unless interest rates have already soared. If they do debt service will cost trillions every year.
Default will happen when there's no other choice. It will happen. It's much easier than raising taxes or cutting spending enough to stop it from happening.
The nation’s unfunded liabilities are something like a million dollars per man, woman and child.
“Full faith and credit” really depends on a large military prepared to crush any country that doesn’t accept US currency—but it is certainly not based on any financial metric.