How long until US default?

[Anonymous]

Personally I don’t think the US will officially default until our national credit rating is downgraded, most likely implicitly when other countries which are financing our revolving deficit realize that we won’t ever pay them back, and it’s not worth the currency peg. Unfortunately, that might happen suddenly (in national economic terms), and we could see hyperinflation overnight. It would be good to be out of the country and taxation jurisdiction when that day comes.

[jonnycsd]

Let’s say that I lease an apartment for $1000/month and I intend to continue leasing it for the next 100 years and pay as I go, out of my future earnings. Does it mean that I have $1000 * 12 * 100 = $1.2 million in debt?

This analogy must be adjusted to get apples to apples.

Let’s say that you sign a 100 year lease for an apartment at $1000/month. YES, THIS MEANS THAT YOU HAVE $1000 * 12 * 100 = $1.2 MILLION IN DEBT! Unless you PLAN to break the lease (equivalnt to telling those retirees, right when they need the money, that, sorry, no Social Security or Medical Care.)

To make it EVEN WORSE, if you do what the Federal Govt is doing, you start puting the monthly rent on your credit cards. Even though you make $800 a month after tax you spend that on a car, going out to eat and NEVER pay down your accumulating credit card debt. Your plan is to continue like this for the next 100 years.

It is not sustainable.

[jonnycsd]

Let’s say that I lease an apartment for $1000/month and I intend to continue leasing it for the next 100 years and pay as I go, out of my future earnings. Does it mean that I have $1000 * 12 * 100 = $1.2 million in debt?

This analogy must be adjusted to get apples to apples.

Let’s say that you sign a 100 year lease for an apartment at $1000/month. YES, THIS MEANS THAT YOU HAVE $1000 * 12 * 100 = $1.2 MILLION IN DEBT! Unless you PLAN to break the lease (equivalnt to telling those retirees, right when they need the money, that, sorry, no Social Security or Medical Care.)

To make it EVEN WORSE, if you do what the Federal Govt is doing, you start puting the monthly rent on your credit cards. Even though you make $800 a month after tax you spend that on a car, going out to eat and NEVER pay down your accumulating credit card debt. Your plan is to continue like this for the next 100 years.

It is not sustainable.

[jonnycsd]

Let’s say that I lease an apartment for $1000/month and I intend to continue leasing it for the next 100 years and pay as I go, out of my future earnings. Does it mean that I have $1000 * 12 * 100 = $1.2 million in debt?

This analogy must be adjusted to get apples to apples.

Let’s say that you sign a 100 year lease for an apartment at $1000/month. YES, THIS MEANS THAT YOU HAVE $1000 * 12 * 100 = $1.2 MILLION IN DEBT! Unless you PLAN to break the lease (equivalnt to telling those retirees, right when they need the money, that, sorry, no Social Security or Medical Care.)

To make it EVEN WORSE, if you do what the Federal Govt is doing, you start puting the monthly rent on your credit cards. Even though you make $800 a month after tax you spend that on a car, going out to eat and NEVER pay down your accumulating credit card debt. Your plan is to continue like this for the next 100 years.

It is not sustainable.

[jonnycsd]

Let’s say that I lease an apartment for $1000/month and I intend to continue leasing it for the next 100 years and pay as I go, out of my future earnings. Does it mean that I have $1000 * 12 * 100 = $1.2 million in debt?

This analogy must be adjusted to get apples to apples.

Let’s say that you sign a 100 year lease for an apartment at $1000/month. YES, THIS MEANS THAT YOU HAVE $1000 * 12 * 100 = $1.2 MILLION IN DEBT! Unless you PLAN to break the lease (equivalnt to telling those retirees, right when they need the money, that, sorry, no Social Security or Medical Care.)

To make it EVEN WORSE, if you do what the Federal Govt is doing, you start puting the monthly rent on your credit cards. Even though you make $800 a month after tax you spend that on a car, going out to eat and NEVER pay down your accumulating credit card debt. Your plan is to continue like this for the next 100 years.

It is not sustainable.

[jonnycsd]

Let’s say that I lease an apartment for $1000/month and I intend to continue leasing it for the next 100 years and pay as I go, out of my future earnings. Does it mean that I have $1000 * 12 * 100 = $1.2 million in debt?

This analogy must be adjusted to get apples to apples.

Let’s say that you sign a 100 year lease for an apartment at $1000/month. YES, THIS MEANS THAT YOU HAVE $1000 * 12 * 100 = $1.2 MILLION IN DEBT! Unless you PLAN to break the lease (equivalnt to telling those retirees, right when they need the money, that, sorry, no Social Security or Medical Care.)

To make it EVEN WORSE, if you do what the Federal Govt is doing, you start puting the monthly rent on your credit cards. Even though you make $800 a month after tax you spend that on a car, going out to eat and NEVER pay down your accumulating credit card debt. Your plan is to continue like this for the next 100 years.

It is not sustainable.

[peterb]

All these scenarios are made better for the debtor by having inflation. So that’s why they do it. But they have to be careful to not over do it.

But, I have to agree that as we grow this debt, the world will want a higher rate of return to compensate for the risk.

[peterb]

All these scenarios are made better for the debtor by having inflation. So that’s why they do it. But they have to be careful to not over do it.

But, I have to agree that as we grow this debt, the world will want a higher rate of return to compensate for the risk.

[peterb]

All these scenarios are made better for the debtor by having inflation. So that’s why they do it. But they have to be careful to not over do it.

But, I have to agree that as we grow this debt, the world will want a higher rate of return to compensate for the risk.

[peterb]

All these scenarios are made better for the debtor by having inflation. So that’s why they do it. But they have to be careful to not over do it.

But, I have to agree that as we grow this debt, the world will want a higher rate of return to compensate for the risk.

[peterb]

All these scenarios are made better for the debtor by having inflation. So that’s why they do it. But they have to be careful to not over do it.

But, I have to agree that as we grow this debt, the world will want a higher rate of return to compensate for the risk.

[Author]

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