Why Doesn't the US Just Default?

[Purple Robed Empire]

Individual loans will be replayed, the debt won't ever go away while the U.S. Is unified.

Why won't the debt ever go away? If loans are being repaid shouldn't the debt be going down not up?

If you want to compare to the private sector major corporations rarely pay off all their debt, they roll it over. Very few, if any , major corporations are debt free.

[Purple Robed Empire]

It'd be cheaper to do our public works projects if we could pay slave wages, though.

Think about the angles!

What the fuck's unemployment insurance?
It's called dole lad.

No, it is called insurance because you pay for it. When you work you pay an unemployment insurance tax and when you are unemployed you take some of that money back out.

[Vashty]

What the fuck's unemployment insurance?
It's called dole lad.

No, it is called insurance because you pay for it. When you work you pay an unemployment insurance tax and when you are unemployed you take some of that money back out.

That's national insurance yeah, but it comes with and as ye dole kidda

[Galloism]

What the fuck's unemployment insurance?
It's called dole lad.

No, it is called insurance because you pay for it. When you work you pay an unemployment insurance tax and when you are unemployed you take some of that money back out.

/nitpick

Employers pay unemployment insurance, not employees.

You could argue that's reflected in the wage ultimately offered to the employee, and you probably would not be wrong, but technically...

[Vashty]

No, it is called insurance because you pay for it. When you work you pay an unemployment insurance tax and when you are unemployed you take some of that money back out.

/nitpick

Employers pay unemployment insurance, not employees.

You could argue that's reflected in the wage ultimately offered to the employee, and you probably would not be wrong, but technically...

it's not like a pension though where your employer pitches in if you do m8

[Farnhamia]

It would be the fireworks show to end them all. Literally.

Remember, mommy,
I'm off to get a commie,
So send me a salami,
And try to smile somehow.

I'll look for you when the war is over,
An hour and a half from now!

[Annorax]

Most of the national debt is held by US banks. All of those banks would collapse. The banking system would collapse. Most people's savings would disappear.

Which would take the entire world banking system down with it.

I don't care it's built on lies and fake fiat currency. We would get out of it eventually and in the end be stronger for it.

[Galloism]

/nitpick

Employers pay unemployment insurance, not employees.

You could argue that's reflected in the wage ultimately offered to the employee, and you probably would not be wrong, but technically...

it's not like a pension though where your employer pitches in if you do m8

What?

[Farnhamia]

Which would take the entire world banking system down with it.

I don't care it's built on lies and fake fiat currency. We would get out of it eventually and in the end be stronger for it.

Sure, what's a generation or two of 19th century standard of loving in the 21st? Walk it off.

[San Lumen]

Which would take the entire world banking system down with it.

I don't care it's built on lies and fake fiat currency. We would get out of it eventually and in the end be stronger for it.

Yes exactly. And every investment should have risk including US treasury bonds. Us Treasury debt shouldn't be a risk free asset it should have risk like any other investment. Its stupid to have built a whole financial infrastructure on the notion that country will never default. So the government doesn't stand behind its word and confidence in our financial system is severely eroded. Why would that be bad? The system gets a massive shock and we go back to individual economies. Polls have also shown a majority of those under 35 don't support capitalism.

[Britanania]

I don't care it's built on lies and fake fiat currency. We would get out of it eventually and in the end be stronger for it.

Yes exactly. And every investment should have risk including US treasury bonds. Us Treasury debt shouldn't be a risk free asset it should have risk like any other investment. Its stupid to have built a whole financial infrastructure on the notion that country will never default. So the government doesn't stand behind its word and confidence in our financial system is severely eroded. Why would that be bad? The system gets a massive shock and we go back to individual economies. Polls have also shown a majority of those under 35 don't support capitalism.

No, what they don't support is unrestricted capitalism.

[Farnhamia]

I don't care it's built on lies and fake fiat currency. We would get out of it eventually and in the end be stronger for it.

Yes exactly. And every investment should have risk including US treasury bonds. Us Treasury debt shouldn't be a risk free asset it should have risk like any other investment. Its stupid to have built a whole financial infrastructure on the notion that country will never default. So the government doesn't stand behind its word and confidence in our financial system is severely eroded. Why would that be bad? The system gets a massive shock and we go back to individual economies. Polls have also shown a majority of those under 35 don't support capitalism.

Sorry? Why would it be bad for the United States of America to go back on its pledged word to pay its debts? Are you kidding me? That you would make such a statement tells me you have no concept of honor or obligation.

[Annorax]

Yes exactly. And every investment should have risk including US treasury bonds. Us Treasury debt shouldn't be a risk free asset it should have risk like any other investment. Its stupid to have built a whole financial infrastructure on the notion that country will never default. So the government doesn't stand behind its word and confidence in our financial system is severely eroded. Why would that be bad? The system gets a massive shock and we go back to individual economies. Polls have also shown a majority of those under 35 don't support capitalism.

Sorry? Why would it be bad for the United States of America to go back on its pledged word to pay its debts? Are you kidding me? That you would make such a statement tells me you have no concept of honor or obligation.

Some of those debts were incurred fighting wars for other countries would you suggest the U.S. take that money back by force if necessary then? What about that honor and obligation?

[Farnhamia]

Sorry? Why would it be bad for the United States of America to go back on its pledged word to pay its debts? Are you kidding me? That you would make such a statement tells me you have no concept of honor or obligation.

Some of those debts were incurred fighting wars for other countries would you suggest the U.S. take that money back by force if necessary then? What about that honor and obligation?

What war debts are still outstanding?

[Annorax]

I don't care it's built on lies and fake fiat currency. We would get out of it eventually and in the end be stronger for it.

Sure, what's a generation or two of 19th century standard of loving in the 21st? Walk it off.

Its built on lies, some guys in a room decide what is money and what isn't and only they are allowed to lord over it. If I did that I would get thrown in jail for counterfeiting, they do it and become rich.

You walk it off.

[San Lumen]

Yes exactly. And every investment should have risk including US treasury bonds. Us Treasury debt shouldn't be a risk free asset it should have risk like any other investment. Its stupid to have built a whole financial infrastructure on the notion that country will never default. So the government doesn't stand behind its word and confidence in our financial system is severely eroded. Why would that be bad? The system gets a massive shock and we go back to individual economies. Polls have also shown a majority of those under 35 don't support capitalism.

Sorry? Why would it be bad for the United States of America to go back on its pledged word to pay its debts? Are you kidding me? That you would make such a statement tells me you have no concept of honor or obligation.

Maybe because if we keep borrowing we will wind up like Greece very soon. Stop borrowing and only spend what we take in. Many people I know agree with me.

[The East Marches]

Sorry? Why would it be bad for the United States of America to go back on its pledged word to pay its debts? Are you kidding me? That you would make such a statement tells me you have no concept of honor or obligation.

Maybe because if we keep borrowing we will wind up like Greece very soon. Stop borrowing and only spend what we take in. Many people I know agree with me.

Yes but you don't have to crash the entire financial system to fix things. Thats like trying to change the course of the ship by putting a democharge in the cargo hold. You may have avoided the iceberg but the ship is still sunk.

[Farnhamia]

Sorry? Why would it be bad for the United States of America to go back on its pledged word to pay its debts? Are you kidding me? That you would make such a statement tells me you have no concept of honor or obligation.

Maybe because if we keep borrowing we will wind up like Greece very soon. Stop borrowing and only spend what we take in. Many people I know agree with me.

The US does not borrow money the way you or I do. The US sells bonds which bear interest. The United States is one of, if not the safest investments in the world.

[Britanania]

Maybe because if we keep borrowing we will wind up like Greece very soon. Stop borrowing and only spend what we take in. Many people I know agree with me.

The US does not borrow money the way you or I do. The US sells bonds which bear interest. The United States is one of, if not the safest investments in the world.

Plus unlike Greece the US economy functions rather well and can sustain increased borrowing

[Farnhamia]

The US does not borrow money the way you or I do. The US sells bonds which bear interest. The United States is one of, if not the safest investments in the world.

Plus unlike Greece the US economy functions rather well and can sustain increased borrowing

Quite right.

[Annorax]

Some of those debts were incurred fighting wars for other countries would you suggest the U.S. take that money back by force if necessary then? What about that honor and obligation?

What war debts are still outstanding?

All of them since the Civil War, at least as of 2013. I admit most of that is still outstanding is the Iraq and Afghan war, but the U.S. could have taken the oil to pay for it which is what most people said the U.S. would do but didn't. Afghanistan has nothing, I guess they could pay in poppy and lithium I dunno.

http://www.businessinsider.com/the-cost ... ars-2013-3

[Imperial Idaho]

Sure, what's a generation or two of 19th century standard of loving in the 21st? Walk it off.

Its built on lies, some guys in a room decide what is money and what isn't and only they are allowed to lord over it. If I did that I would get thrown in jail for counterfeiting, they do it and become rich.

You walk it off.

Its a simple concept on why we use paper currency and why we did use gold, if we wanted to we cold decide that antique soda bottles are used instead of a one dollar bill along with 3 2x4's as 20 dollars, though its a bad system

[San Lumen]

What war debts are still outstanding?

All of them since the Civil War, at least as of 2013. I admit most of that is still outstanding is the Iraq and Afghan war, but the U.S. could have taken the oil to pay for it which is what most people said the U.S. would do but didn't. Afghanistan has nothing, I guess they could pay in poppy and lithium I dunno.

http://www.businessinsider.com/the-cost ... ars-2013-3

I dont understand what your talking about regarding war debt.

[Egemore]

Sure, what's a generation or two of 19th century standard of loving in the 21st? Walk it off.

Its built on lies, some guys in a room decide what is money and what isn't and only they are allowed to lord over it. If I did that I would get thrown in jail for counterfeiting, they do it and become rich.

You walk it off.

Stop listening to internet conspiracy theories.

The Fed is audited, and you can see the results of the audit yourself.

The federal reserve sends all profits to the treasury. Ben Bernanke and Janet Yellen aren't getting rich from the fed.

Commodity backed money prolonged the Great depression. The rise of interest rates needed to keep the gold standard intact stifled the recovery and led to prolonged economic downturn. Countries that got off the gold standard earlier got out of the depression faster.

The gold standard caused massive swings in inflation. Some years there would be massive inflation (due to the discovery of new gold deposits) and some years there would be large deflation. Today, inflation is low and predictable.

[Farnhamia]

What war debts are still outstanding?

All of them since the Civil War, at least as of 2013. I admit most of that is still outstanding is the Iraq and Afghan war, but the U.S. could have taken the oil to pay for it which is what most people said the U.S. would do but didn't. Afghanistan has nothing, I guess they could pay in poppy and lithium I dunno.

http://www.businessinsider.com/the-cost ... ars-2013-3

That article is about benefits being paid to the families of US veterans. Next time try to read the article before citing it. Are you saying the US should claw back benefits paid to the families of the men who fought to keep us free?