Comment: We should probably stop defaulting.

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We should probably stop defaulting.

"He ends by saying that it's time to take the credit card away from the government which of course can't be done unless you have a bigger military and more cops than the government does."

I don't think you should take it quite so literally. Voting in politicians who will get spending+interest below revenue (and/or holding existing ones accountable if they do not) is probably what is meant by the video.

"So what if we default?"

Keep in mind that we have already defaulted, multiple times, and pretty much continuously for the past several decades. The gold confiscation/repricing in the 1930s was a default. The closing of the gold window in 1971 was a default. And monetary inflation (which devalues dollars and therefore decreases, in real terms, dollar denominated debt) is a continuous/gradual default. The game plan is likely to keep inflating enough to keep the debt under control while doing whatever is necessary to keep bond yields from getting above (or anywhere near really) the real inflation rate. That plan will ultimately fail -- but the exact timing and failure mode are hard to know.

But to try to answer the question you were really asking (i.e., an "in your face, tell 'em to get lost" kind of default): The dollar would collapse. The US government would not be able to obtain any credit from abroad. There would likely be trade sanctions imposed. People in the US could suddenly find themselves without critical goods, and with no manufacturing capacity. Unless the US is prepared to go to war with the world, the abilility of the US to have any influence abroad (militarily or otherwise) would evaporate. (This is really wild speculation -- I'd be interested in hearing what others think might happen.)