Comment: Because if we default on the debt we lose credibility and nobody

(See in situ)


Because if we default on the debt we lose credibility and nobody

will loan to us again.

The REASON we are able to borrow is that they know we will pay back.

And if your argument is "Fine. We don't have to worry about that. We shouldn't borrow anyway".

Then I remind you that about $5 trillion of that debt we would be defaulting on is the money we have borrowed from the Social Security Trust Fund.

THATS RIGHT. After the Federal Reserve - the biggest holder of US debt in that $16 trillion = is the Social Security Trust Fund - it holds way more than China and all the other countries put together.

So we would be defaulting on OURSELVES and Social Security really would be bankrupt with no chance of resurection ever.