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FiniteBanjo@feddit.online ⁨3⁩ ⁨weeks⁩ ago

Honestly not sure why the USA banks haven’t let the Government default, yet. It sort og shows they actually still have faith in the Trump administration.

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margaret_erine@sh.itjust.works ⁨3⁩ ⁨weeks⁩ ago
Oh yes, they do have faith in Trump administration.

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Strider@lemmy.world ⁨3⁩ ⁨weeks⁩ ago
Europe could also let the USA bonds default…

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- Knock_Knock_Lemmy_In@lemmy.world ⁨3⁩ ⁨weeks⁩ ago
  No. Default is when the bond issuer doesn’t pay interest.
  
  The US government can let the bonds default by not paying. This can be by not issuing new debt (or getting the fed to print more money).
  
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- FiniteBanjo@feddit.online ⁨3⁩ ⁨weeks⁩ ago
  That harms USD Value not so much government operations, so in a roundabout way it actually makes the US Debt slightly less from a pure value perspective. The USA system is such: Government Deficit equates to Loans taken out from US Banks, meaning $38.876 Trillion USD is owed from USA Federal Government to the US Banks.
  
  Meanwhile, more about bonds, between $2.3 and $3 Trillion USD worth of bonds gets issued inside and outside the USA every year for the past 30 years (bonds fulfill in either 15 to 30 years) so if every nation on earth (and their citizens) and the US Citizens suddenly traded in their bonds all at once then it could cause a lot of headaches for the US state but at the end of the day as long as US Banks are willing to loan them cash then it has infinite money.
  
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theneverfox@pawb.social ⁨3⁩ ⁨weeks⁩ ago
If the US defaults, America as an empire collapses. It could be as small a deal as a massive period of restructuring, or it could mean the death of billions and the end of modern life

It sure as hell won’t be a better world for the banks though, they’ll invent new types of math to keep the game going a little longer

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- FiniteBanjo@feddit.online ⁨3⁩ ⁨weeks⁩ ago
  There is no America as an Empire.
  
  It would be no different than an extra difficult government shutdown. I predict that the government would be forced to start selling off properties to run the IRS and make settlements with the banks.
  
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