2024-11-23 14:45:14
The US cannot go “bankrupt,” whether meaning involuntarily defaulting on its debt or running out of money. [Link] NEEDS_MORE_RATINGS(6-0-25) Author
2024-11-23 16:19:08
No note needed. An increase in the amount of debt held by the United States government could lead to the nation defaulting upon it if we are not able to raise revenue to repay it. Our nation isn't funded by magic. [Link] NEEDS_MORE_RATINGS(7-0-5) Author
2024-11-23 17:47:42
The Forbes article linked in the current note suggests that the solution for the US avoid defaulting on debt is to print more money. Many economists believe that this would have severe negative consequences like hyperinflation. Thus, the Forbes article is an opinion. [Link] NEEDS_MORE_RATINGS(7-1-4) Author
2024-11-23 18:23:41
This graph of Federal spending and income is misleading because it does not separate FICA and the General Fund. A separate income tax funds FICA, it does not draw on the General Fund and is probably sacrosanct. The General Fund is where the massive amount of debt originates. [Link] NEEDS_MORE_RATINGS(4-1-10) Author
2024-11-24 07:26:04
Governments with a fiat currency system under their control can't go broke or be insolvent unless a political decision to do so is taken. [Link] NEEDS_MORE_RATINGS(2-1-2) Author
2024-11-24 13:57:27
The US issues two types of points on a spreadsheet: cash and bonds, and swaps these on demand (“repayment”). It can’t default. It’s a points system and the issuer of points can’t run out of points The US sets the interest rate on its own debt, via the central bank [Link][Link][Link][Link][Link][Link] NEEDS_MORE_RATINGS(4-0-2) Author