Will US have trouble paying debt interest of 1T a year?
We owe 35T. If we renegotiate debt with current rates we will easilly have to pay 1T in interest a year. Will we have trouble paying that?
Start banking your money overseas folks! You can’t carry bars of gold on airplanes without being stopped. If you have friends or families overseas, keep leveraging them to build your abode abroad. Learn from our founding CEOs. Why do they live abroad?
Great idea buying garbage foreign currencies with even worse inflation. If the US defaults that’s bad news for the world
The US makes 9 trillion in federal and state spending. And they will debase the currency by 640 billion minimum each year. So the ponzi scheme can keep going for decades.
Gdp is 25T. Did you pull the 9T tax figure from your behind? Furthermore, assuming you were correct (which you are not) there is a 3T deficit every year
Many leading economists and banking figures are already predicting a new kind of trouble in global affairs if U.S. doesn’t start servicing their debts soon. Other Countries will stop paying their dues. There will be sovereign defaults and this will lead to a lot of instability.
They will not pay it back instead they will choose to go on war with other countries and decide debt is waived by bringing some new law. Losing countries in war will have to pay back a lot which will drive the US economy
Inflation is lowering the debt
@Everyone, Bitcoin - volatile as it is in the short term - really does fix this. As of last month it has a lower inflation rate than gold making it the hardest money in the world. All those here with high TC would be well served to own at least 1 BTC and to continue accumulating it with a portion of their savings (3-5%) as a hedge against the USD/debt. Read The Bitcoin Standard by Saifedean Amous to learn more - I have given out 10 copies to friends/family so far.
Even though I am an asian, I am following the same strategy
They don't need to crash. Think through what inflation did to the debt - tax revenue rises with inflation, the debt payments on existing debt don't, and new debt is only temporarily issued at a higher rate Now you can figure out how long inflation is going to last - item end when the federal debt is balanced against revenues.
The best thing for the national debt is modest inflation, not hyperinflation. Inflation at, say, 4% will reduce the federal debt by 20% in five years. It effectively does that by making people poorer
Why would the US renegotiate debt?
Debt has terms
Older debt is mostly on lower rates than today so it makes no sense to do so