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Credit cards are the same as the government borrowing money to pay the current bills, in other words, the budget deficit. The only difference is the credit company is the Federal Reserve, who prints money out of thin air, along with its minions the banks and banksters. Sooner or later it all has to be paid back, unless there is a default (bankruptcy) by the consumer or state.
Can the US default?
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Yes, indeed it can. It has defaulted at least thrice before, 1871, 1933 and 1972 or 3 by Nixon. The state may have defaulted around 1812, which may have been a major cause of that invasion. Thanks to the Russians, we were able to do something about the British, then.
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30 sats \ 1 reply \ @Satosora 2 Dec
I see. It hasnt happen in my lifetime, yet.
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No, you don’t see. It is happening before your very eyes, right now!! You have to wake up to the fact that FRN fiat is going to zero. That is a default.
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What happened to the debt after the default?
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The debt goes to zero and the collateral gets scooped up by the creditors.
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Thanks for the education
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You’re welcome.
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