Originally Posted by rock_jock
Serious thread. What specifically will happen? Not the vague descriptions of doom and gloom, but the inevitable consequences.
Will we go into receivership, with creditor countries dictating a budget for us?
Can we unilaterally discharge our debt and, if so, what will be the effect on the world?
Can we devalue our currency, go into a massive inflationary cycle, and pay off the debt with worthless dollars?
Will we be forced by international court into liquidation of assets?
What will happen when the banking system collapses?
I'm surprised that no one seems to be covering this, not even Fox News. I think most Americans find the idea so unsettling that they cannot seem to rationally confront it as a reality, one that I believe is not just a potential but rather as an inevitability.
I see one consequence occurring. I think secession will go from a fantasy of the far-right to a blueprint for a new republic.
How can you default when you just print more money?
The problem then becomes inflation. The only thing preventing runaway inflation at this point is low interest rates.
There will be no callopse of the financial system until those that hold dollers view them as worthless. The biggest danger is losing the status as the worlds reserve currency.
If the rest of the world doesn't want to deal in dollars, then we will have a problem.