How much gov debt will lead to mass panic? In Greece it was 127% of GDP...

>America doesn't need to worry about debt because the dollar is still the world reserve currency and the US military is still the strongest in the world by a massive margin. Nobody could ever collect.
Just because debts cannot be collected at gunpoint doesn't mean default has no consequences. The USD's status as a reserve currency is just as much a function of US military supremacy as it is widespread faith that debts denominated in USD will be paid back. Either debts are repaid with brrrrr printer money or faith in the system is lost. Either way, inflation is the inevitable result.

>This is how mutts think
the fx market will decide if they want to write contracts in a different currency. 70% of contracts are in USD right now. imagine being left with a glut of USD that no one else wants & you're responsible for the the debt.
I'd love to go to Burgerland once reality sets in. It's going to be a textbook example of cognitive dissonance.

Depends. Who are the creditors? Americans or Chinese people?

If foreigners can't collect, the US will stop being able to run deficits, the entire world becomes scared of doing business with the US and importing becomes very hard

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you are paying it down right now retard
and if you stopped and threatened your creditors with military force they would never trust you again
what are you gonna do now, invade them with an unpaid army because no one will give you credit anymore?

>The dollar is literally a debt note
>Interest on that debt is paid in dollars

As long as money printer goes BRRRR it literally can continue forever.

You're a simp if you pay taxes

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He is kind of correct though. Our financial system is all just a Jewish illusion. The debt doesn’t need to be paid off nor does the interest. We could just forget about it all tomorrow, we could stop giving value to fake paper money or stupid shiney rocks and return to a system that is of fair trade between things of actual value and give fair value directly to the worker of what their labour is actually worth, without all the parasitism of Jews and shitskins. We could easily just create our own currency also and only deem that as value, ban the Jewish from doing business with us and live in a self sufficient paradise where you do not need to work your entire life to pay off and live in some OSB cardboard box.

Good goyim. Keep paying us those hundreds of billions in interest every year.

Its all hocus pocus and trickery the jews use to enslave us. Digits on a screen amd green paper. All we need is the working man to wake up.

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In a fiat monetary system the total debt is just an arbitrary number. Its pretty much just the increase in money supply from some arbitrary starting value. What's more important is inflation and interest rates. The panic starts when prices start to rise. Interest rates will have to go up to stop spiraling inflation, which will crash the stock and bond market. Eventually the government will have to pick between the two. For now, foreigners keep flocking to the dollar for some reason which has propped it up in the short term.

Wouldn't the debt be the cause of inflation and/or higher interest rates?

Japanification is already here in the form of minimum wage and public education.

Bump

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They’re paid back in favors, usually military or economic support.

LMFAO @ any eurocuck, bug eating asian, shitskinned african, mud hut beaner, frostbitten ruski, or kango-fucking aussie that thinks we will EVER pay back what we owe you cucks

the USA military is larger than all other militaries COMBINED

No, the expansion of the money supply the cause. The government spends more than it taxes, and it does that by printing money. Except they don't (at least didn't) like to say that politically, so we have this archaic system where the fed buys bonds and keeps a running tally which we call the "debt." But it doesn't really matter.

I believe that banking institutions are more dangerous to our liberties than standing armies....

There is a reason why even in Game of thrones the Queen of the greatest landmass was more scared of the bank than of the other queen with three fucking dragons.

lol you idiot, at some point the world is just gonna choose a different reserve currency if they don't pay up

kek no one would actually fight for this country if there was a WW

So what happens when other countries refuse to accept dollars then?

The expansion of the money supply is needed to service the debt

inflation. a big part of what it's for

the US government debt doesn't matter, and if you don't understand why, you're stupid and shouldn't talk politics ever.

>Nobody could ever collect.
This

The dollar is no longer converting to a metallic base.

The base is now Confidence in the U.S. military...

Is that neverwinter nights?

why would you have confidence in that?\

i can't believe this is what retards actually think

"a currency backed by violence" just kek that you think this is viable

No because, Japan stagnated technologically and economically, lack of individuality and entrepreneurship. That's why Japan never had an Apple or Microsoft. They had Sony but they let Apple destroy them with iTunes.

No, a currency backed by peace backed by the threat of violence. There is a difference.