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So what happens when people stop lending money? No more military spending? No more social security? Massive tax rises? Hyper-inflation?
by verzali 28d ago
So what happens when people stop lending money? No more military spending? No more social security? Massive tax rises? Hyper-inflation?
- skeledrew 27d agoThey will be told "lend us money, or else" and that loan will get processed because the alternative is worse.
- bakies 27d agoOr else what? The military can't keep a little water way open that's critical to international trade
- webninja 27d agoI'd say if the trend continues: all the above and full federal governmental collapse. Compound interest is one of the most powerful forces in the world. Currently interest on the debt is ~19% and is growing at a CAGR of 11.2% per year. At the current growth rate, how long until interest on the debt consumes 100% of all tax revenue? A ray of sunshine & hope: Many state governments who are both low-debt and fiscally conservative will be fine. We also experience small amounts of this with each governmental shutdown. Start planting fruit trees so the next generation can eat.
- mortos 25d agoSocial security is entirely funded through FICA taxes on payroll. Take a look at your paycheck. Legally money for social security cannot come from debt.