Re:What being filthy rich in China looked like in 1, 1000, a...
by catlover76 on Tuesday October 24, 2023 @10:49PM
(#38008589)
To be clear: the consequence is that, the next time around, nobody will lend to us if we need it (which is why we would have to start balancing the budget)?
[ Parent
| on HN ]
Re:What being filthy rich in China looked like in 1, 1000, a...
by s1artibartfast on Wednesday October 25, 2023 @02:18AM
(#38009734)
Next time is every single year because the US, like most countries, need to borrow to run the government.
Re:What being filthy rich in China looked like in 1, 1000, a...
by hippoSquid on Wednesday October 25, 2023 @10:46AM
(#38013401)
Yes we would need to immediately start running a balanced budget. It would probably be a long time before we could borrow again. If we ever did borrow money again, we would be paying a higher interest since we've shown lenders that we can default.
It would also mean $33T in assets disappearing from the economy. That's a massive amount that would bankrupt tons of individuals/companies that lent the money. $2.8T of that amount is the social security trust fund which means we need to also instantly cut social security too. $7T of the debt is held by other countries who wouldn't be happy with us either.