If the United States cannot even pay back its own people...

[originalpckelly]

then who's to say it will be able to pay back any other investors in its debt?

[FreeJoe]

1. Huh?

The US can easily pay what it owes. That's why it has a AAA credit rating. It is borrowing more than is healthy, but its total debts are still fairly low relative to its potential income. It has to decide to either increase its income (raise taxes) or decrease its expenses, but both can be done.

[originalpckelly]

4. No, it can't be done.

When you actually look at the budget, it's not that simple.

We honestly cannot cut very much, and if we raise taxes, just how will the stock market react? I have a feeling it won't be very good.

[geckosfeet]

5. Cut military. Billions is available in bases around the world. Bring them home.

Defend the borders if you must. Develop renewable energy.

[Hannah Bell]

7. it's very simple. you're saying the stock market will crash if tax rates return to those of say the

clinton era?

whatever.

[originalpckelly]

9. That's not going to be enough.

Taxes are going to have to go up even more.

[Hannah Bell]

10. prove it. prove *how much* taxes "would have to" go up.

[doc03]

13. How do raise taxes if the Republicans just refuse to

vote for any tax increase?

[Jim__]

11. Really? The US can't make substantial cuts in military expenditures?

Source:

[FreeJoe]

2. The ace in the hole

I forgot to add that most its debts are in US dollars, which it can print at will if necessary.

[originalpckelly]

3. Really? And you won't cause inflation?

I had no idea that we could do that. Why the fuck are we even paying taxes?

The dollar is worth a lot, and soon it'll even be worth a continental.

[geckosfeet]

6. Yes. Don't you see - to each, according to his ability

to print greenbacks!

If I am a better printer than you - I am richer! Why should the government be the only source of freshly printed money? After all, I create wealth by working. I can just stop working and print money.

[badtoworse]

12. Ever hear of the Weimar Republic?

What happens when the world stops accepting dollars as payment for imported goods and services?

[FreeJoe]

14. Hyperinflation isn't necessary

It's not necessary to make huge increases in the money supply in a short period of time. One option that the government has is to target inflation at around 10% instead of around 2%. If they did that, half the debt would be monetized in about 7 years. We survived inflation like that in the 70's. It wasn't pleasant, but it didn't lead to a Nazi takeover.

I'm not advocating that we inflate away our federal debts. I'm just suggesting that the OP's notion that the US will not be able to pay its debts seems like quite a stretch. We have plenty of ability to do so by raising taxes (35% top rate? Seriously?) and cutting expenses (how many wars are we financing? How much corporate welfare?). If we lack the political will to fix the problem that way, I think some level of printing money/inflation would be tried long before we simply defaulted.

[Hannah Bell]

8. bullshit.