US could run out of cash as soon as Dec. 15, Janet Yellen warns

[STT]

Its real that the debts outweigh the available assets, only by issuing a continual stream of new money do the books then balance.    It doesnt have to collapse but its precarious to have constant deficits both fiscally and also trade deficits ongoing for years into decades.   Every citizen of the USA now owes over 70k towards the national debt if all debts were called in.   That isnt possible normally as some of these bonds are not due for 20 years but still its not fantasy situation but a reality and the end result is continual dollar devaluation.

[Abiky]

Its real that the debts outweigh the available assets, only by issuing a continual stream of new money do the books then balance.    It doesnt have to collapse but its precarious to have constant deficits both fiscally and also trade deficits ongoing for years into decades.   Every citizen of the USA now owes over 70k towards the national debt if all debts were called in.   That isnt possible normally as some of these bonds are not due for 20 years but still its not fantasy situation but a reality and the end result is continual dollar devaluation.

The national debt may be rising, but the US can simply print more money to "solve" the problem. This will lead us to greater inflation rates, which translates to the devaluation of the US Dollar. The higher the debt grows, the faster the world's reserve currency will plummet. I wouldn't worry too much about this since we already got Bitcoin. People who want to protect themselves from the negative effects of inflation will simply resort to deflationary assets like Bitcoin and Gold. It's as simple as that.

If Fiat collapses in its entirety, then we might be headed back to the Gold standard. Or maybe Bitcoin will take over the world as the standard unit of account? We'll see what'll happen with the US and the global economy as the pandemic continues to take the world by storm. Just my opinion

[oHnK]

Yes, I remember this thread! Well, tell me how "the US ran out of cash"? Has the dollar already collapsed? Is the US economy bankrupt? Yuan has become the world's international settlement currency? Not ? Oh - why so? Yeah, I understand - now the national debt will grow to $ 35 billion, and then "everything will definitely collapse in the USA"! But you will be surprised - NOTHING will happen. You just need to read less science fiction propagandists

sometimes reading propaganda theories as you convey as shown in a collection of facts that are deliberately hidden by many people and when believing them like strangers in the midst of mistakes in society.  The current economic system is just waiting for time to collapse and can't take it anymore, in the end the fiat system will change to another new system such as the gold system being replaced.

[Haunebu]

If Fiat collapses in its entirety, then we might be headed back to the Gold standard. Or maybe Bitcoin will take over the world as the standard unit of account? We'll see what'll happen with the US and the global economy as the pandemic continues to take the world by storm. Just my opinion

FIAT collapsing completely? I don't think so. This isn't the first time that FIAT currencies like the dollar have faced these kind of issues and they have successfully endured no matter what which will most likely never change.

BTC becoming the standard payment method is just wishful thinking. It will continue to co-exist with FIAT currencies and won't completely replace them in my opinion.

[Abiky]

FIAT collapsing completely? I don't think so. This isn't the first time that FIAT currencies like the dollar have faced these kind of issues and they have successfully endured no matter what which will most likely never change.

BTC becoming the standard payment method is just wishful thinking. It will continue to co-exist with FIAT currencies and won't completely replace them in my opinion.

Good point. After all, Fiat is strongly manipulated by governments and central banks. In the case of the US Dollar, the FED can simply print more money to "solve" the problem. Inflation will rise, but that's something inevitable. For Fiat to truly disappear (or collapse), banks need to fail altogether. But again, that's very unlikely to happen because of the reasons mentioned previously. With talks about launching a "digital dollar", it seems to me that America's currency won't be going anywhere soon.

At least, there's an alternative financial system which empowers people to be their own bank. If we didn't had Bitcoin in the first place, we would've been "stuck" with centralized Fiat. Hopefully, the US economy will recover after the end of the COVID-19 pandemic. Just my thoughts

[Mometaskers]

The government running out of money? Impossible! Just print more! 

I imagine they'll do some manipulation to "solve" this if they don't outright let the printers go brrr again. Or they just might let that inflation skyrocket and then resolve it by creating a new currency, similarly to how Brazil's Real came to be. Perfect time to launch a digital fiat, I would say.

[Abiky]

The government running out of money? Impossible! Just print more! 

I imagine they'll do some manipulation to "solve" this if they don't outright let the printers go brrr again. Or they just might let that inflation skyrocket and then resolve it by creating a new currency, similarly to how Brazil's Real came to be. Perfect time to launch a digital fiat, I would say.

Exactly. The government will never run out of money as long as it controls its supply. It's just as easy as "pushing the button" to print more bills and put them in circulation. If there's too much inflation, the central bank can simply create a new currency from the ground up. Just like you said, this might be the perfect time to launch digital Fiat. Only the debasement of existing Fiat currencies will lead us towards a cashless society faster than we could've ever imagined.

With the US Dollar still positioning itself as the reserve currency of the world, it's unlikely the American economy will collapse in its entirety anytime soon. Just my thoughts

[Sithara007]

LOL.. if anyone want to check the US federal debt in real time, then go to this website: https://www.usdebtclock.org/

For those who are unware, the federal debt has crossed $30 trillion, thanks to people like Janet Yellen and Ben Bernanke. And I would blame both the Trump and the Biden regimes for this spike in debt. When Trump took office, the debt stood at $20 trillion, and it was measured at $26.9 trillion when he left office. And Biden managed to add $3 trillion to it in just around one year. And it will get worse, given the rising oil prices and tensions along the Russia-Ukraine border. Only fools would store their money in USD right now.

[DrBeer]

Yes, I remember this thread! Well, tell me how "the US ran out of cash"? Has the dollar already collapsed? Is the US economy bankrupt? Yuan has become the world's international settlement currency? Not ? Oh - why so? Yeah, I understand - now the national debt will grow to $ 35 billion, and then "everything will definitely collapse in the USA"! But you will be surprised - NOTHING will happen. You just need to read less science fiction propagandists

sometimes reading propaganda theories as you convey as shown in a collection of facts that are deliberately hidden by many people and when believing them like strangers in the midst of mistakes in society.  The current economic system is just waiting for time to collapse and can't take it anymore, in the end the fiat system will change to another new system such as the gold system being replaced.

For about 30 years I have been watching the hysterical cries of all the "fighters against capitalism", like "here they will destroy the USA, the dollar and capitalism." During this time, the USSR, the Warsaw Pact collapsed, all the builders of "bright socialism" have also either rotted or changed the vector of development to the norms of the normal world. In order for one system to be really replaced by another, this requires the consent of those who manage this process. Now the blood of the world economy is the dollar. And the whole world is absolutely satisfied with this, well, except for a couple of fighters for a "bright future" like Maduro, Putin, North Korean Kim Jong-un

[Abiky]

LOL.. if anyone want to check the US federal debt in real time, then go to this website: https://www.usdebtclock.org/

For those who are unware, the federal debt has crossed $30 trillion, thanks to people like Janet Yellen and Ben Bernanke. And I would blame both the Trump and the Biden regimes for this spike in debt. When Trump took office, the debt stood at $20 trillion, and it was measured at $26.9 trillion when he left office. And Biden managed to add $3 trillion to it in just around one year. And it will get worse, given the rising oil prices and tensions along the Russia-Ukraine border. Only fools would store their money in USD right now.

Sadly, the US national debt keeps increasing like there's no tomorrow. Sooner or later, the USD will lose its status as the reserve currency of the world. The FED will simply print more money in order to help "solve" the situation. But at the end of the day, this will affect the pockets of everyday people (especially those in the middle-class). Those who're smart would simply invest into Gold and/or Bitcoin in order to retain purchasing power over time.

Just like you've said, things will get worse with the rising tensions along the Russia-Ukraine border. The cost of living for Americans will be so high, that people will be forced to emigrate from the country. I just hope the USD will recover back to its former glory after the end of the COVID-19 pandemic. There's lot of uncertainty right now, so we should be prepared for the worst. Just my opinion

[Fortify]

More at source. I trimmed the article down to its most relevant parts.

It appears that a US federal government default is on the table. An event which has reached mythical proportions over the past century. Every year for the past 50+ years people warn the government could default and social security will collapse. This negative sentiment has become so common and widespread that over time americans have come to believe it can never happen. "Social security will fail." Oh but people have been saying it will fail for 50 years and it hasn't. This means social security can never fail.

As time passes and debt grows, our options and safety net for resolving these issues in a positive way, shrink.

If anyone has bright ideas for how these issues might be resolved. Now would be a good time to voice them.

A jump start on what could develop into a full blown crisis might also be a good policy.

This crisis seems to come around like clockwork every 2-4 years and it really is a bit ridiculous. Covid made things tough but both parties have contributed to the overall borrowing figure so it should never be reduced to petty politics in order to raise it. Unless both parties start to commit to having a budget surplus, then the default path should be to raise it without pushing the government and connected services to the brink each time. The fact is that if America ever "ran out of money" it would be a self inflicted wound by one of the two main political parties and for no other reason. The central bank is able to print more money any time they choose and as the reserve currency of the world it'll be easily absorbed.

[stompix]

And it will get worse, given the rising oil prices and tensions along the Russia-Ukraine border. Only fools would store their money in USD right now.

Yeah right..
Russian banks imported $5 billion in foreign cash in December

Around a half of Russia's total banking foreign assets and liabilities, or some $100 billion and $70 billion, respectively, are held in U.S. dollars, central bank data shows.

Seems like the de-dolarization is just another propaganda news clip, in reality, they are hoarding dollars more than Americans.

Sadly, the US national debt keeps increasing like there's no tomorrow. Sooner or later, the USD will lose its status as the reserve currency of the world.

I'm willing to bet that besides their national currency almost nobody here knows the price of bitcoin in anything other than $, I don't remember anybody cheering that BTC has reached 1 million or 3 million rubles or got passed 200 000 or 300 000 yuans.
No matter what you wish to think is happening, the $ is still king, and not threatened by any other currency, and as long as china sell stuff for those $, and pays its imports in $, there will be no de-dollarization.

[Abiky]

I'm willing to bet that besides their national currency almost nobody here knows the price of bitcoin in anything other than $, I don't remember anybody cheering that BTC has reached 1 million or 3 million rubles or got passed 200 000 or 300 000 yuans.
No matter what you wish to think is happening, the $ is still king, and not threatened by any other currency, and as long as china sell stuff for those $, and pays its imports in $, there will be no de-dollarization.

That's because the US Dollar is still the reserve currency of the world. Not to mention, people aren't using Bitcoin as a "unit of account". Things would've been different if everything was valued in terms of Bitcoin instead of Fiat. In a "hyperbitcoinized" world, you would measure the value of goods and services in terms of "satoshis" instead of US Dollars or any other national currency. It sounds crazy but not far from becoming a reality soon.

There's only one way "hyperbitcoinization" will happen and that is if the current banking system collapses in its entirety. As soon as the USD and other Fiat currencies collapse, Bitcoin and other cryptocurrencies will take over the global economy. USD's inflation rate keeps rising, so it should only be a matter of time before people start losing faith in it. Just my thoughts