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Ok, I should say "run out of borrowed money". However, the fed. gov't. takes quite a lot in tax revenue. So they do have it. The fact that they owe it all is a different matter. I owe a lot more on my mortgage than I earn as an annual salary. But I'm not out of money.
Ok, I should say "run out of borrowed money". However, the fed. gov't. takes quite a lot in tax revenue. So they do have it. The fact that they owe it all is a different matter. I owe a lot more on my mortgage than I earn as an annual salary. But I'm not out of money.
Your net wealth might be negative (I don't know your situation, but most people are.) The only "asset" you have is the expectation that on payday, you will be given something of portable value (money) in exchange for your labor.
Bottom line is that gov't. has PLENTY of money coming in all the time, not just the week of April 15th. Yes, that money may be worth less and less and it may begin to just cover debt service and some other obligations. But the income stream is quite good. I've read figures that, if we completely abolished all personal income taxes, the federal gov't. would still take in as much as they did in the year 2000. The personal income tax is but one revenue source for the gov't. The $70 billion annual surplus run by Social Security is another, since that money is raided and never repaid. Bond sales are still pretty good business too, though it would come to a screeching halt if we stopped paying on them.
Other countries would stop buying our bonds and our gov't. would quickly run out of money.
we used to do fine without their borrowed money. I guess maybe my thinking is if we were to "bankrupt" on them, what is the worst that would happen. If they didnt buy our bonds would it really be that bad? I know nothing about world economics. The thought of all the money we spend over seas baffles me when I constantly hear we have no money.
the goverment will never stop paying its debt. if it runs out, it will just print more money in order to fulfill its obligations, making every dollar in your wallet worth less.
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