When Trump started behaving erratically I considered the possibility of the US defaulting on its debt, now I consider it a certainty. The consequences of this are hard to fathom.
What most people will offer as the result: Some economic results, a stagnant economy where no borrowing is possible. Loss of all ratings from the world bank. Debt repayment systems that cripple economic growth.
What actually tends to happen historically: Massive inflation and money loss due to it exiting the system. Fascism, mass killing, militarization of Government, invasions of smaller countries. Being a pariah state. Ultimately a world war against you.
I think some people in the admin actually want that. A lot of them are heavily into crypto and other assets such as real-estate, and they won’t be able to balance trade as long as the USD is the world’s reserve currency.
When Trump started behaving erratically I considered the possibility of the US defaulting on its debt, now I consider it a certainty. The consequences of this are hard to fathom.
What most people will offer as the result: Some economic results, a stagnant economy where no borrowing is possible. Loss of all ratings from the world bank. Debt repayment systems that cripple economic growth.
What actually tends to happen historically: Massive inflation and money loss due to it exiting the system. Fascism, mass killing, militarization of Government, invasions of smaller countries. Being a pariah state. Ultimately a world war against you.
I think they could just print money to pay instead of defaulting because the debt is denominated in USD (still disastrous though).
That would make the usd worthless.
I think some people in the admin actually want that. A lot of them are heavily into crypto and other assets such as real-estate, and they won’t be able to balance trade as long as the USD is the world’s reserve currency.