Good question.....
Redom's question is a good one. Thinking about it ....Technically the USA cannot default as long as they can print USD, and bond holders and 'suppliers' (think .... oil e.g.) accept those dollars as payment. The USA is well past the point where they can actually repay their debt as such. Best they can do (as I see it) is they inflate the problem 'away'. Then, will the bond holders accept that inflated paper? It would sure change the world if e.g. Oil suppliers etc insisted payment in gold physical !! Servicing the USA debt must also get more interesting as interest rates return to normal .....whatever normal is these days ..LL
Redom's question is a good one. Thinking about it ....Technically the USA cannot default as long as they can print USD, and bond holders and 'suppliers' (think .... oil e.g.) accept those dollars as payment. The USA is well past the point where they can actually repay their debt as such. Best they can do (as I see it) is they inflate the problem 'away'. Then, will the bond holders accept that inflated paper? It would sure change the world if e.g. Oil suppliers etc insisted payment in gold physical !! Servicing the USA debt must also get more interesting as interest rates return to normal .....whatever normal is these days ..LL