Is the US default a reality?

[be.open]

A country that prints its own currency can't default on its debt, they would simply print more currency units if required. That's been the general practice since the gold standard was done away with, except debt's been exponentially rising over the last few decades because the U.S. created a hole that they can't escape. The interest on the debt alone will consume them, requiring even more borrowing.

In general, you are right. The problem with US debts has become much worse not so much because of another excess of the debt ceiling, but because, against the backdrop of an increase in the key rate, even simply servicing debts has become too expensive. Plus, the debt problem can be compared to an iceberg, only a small part of which is on the surface. According to economists at AB Bernstein, in 2019 the total US debt burden was 1832% of nominal GDP. Since then, the situation has deteriorated markedly.

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[bluebit25]

I think this is just the media exaggerating and sensationalizing events for dramatic effect on viewers and readers. As you know, the United States has led the economy for the past few decades. So it is very unlikely that the United States will break me. Even if the USA is about to reach the ceiling, those things haven't happened yet, have they? Therefore, we should still remain calm rather than panic, because panic will make it very easy to be manipulated by people. In general, it is still necessary to continue to follow the news every day, and in addition, it is also necessary to have a reasonable approach.

[Smartprofit]

Now all the news is writing about a possible default, is it real in the modern world, or is it information propaganda? How do you feel about this situation and what will happen for the rest of the world, you should be afraid of inflation or subsidence of the entire market. how to act in this situation and not lose money? It is worth now to run to withdraw money from the account or change it to the currency of other states. What kind of alignment awaits and what to analyze in general. Perhaps the extreme situation is a technical default, which does not pose a particular threat, but you need to prepare for non-standard options for the development of events.

There are so many different ways to avoid default in the US.... 

First, the US government owns several trillion US dollars of valuable property.  First of all, these are land plots.  These land plots can be pledged, bonds can be issued against this security and the money necessary to pay off the debt can be received. 

Secondly, you can use an even more non-standard solution - the Fed can issue a banknote with a face value of 1 trillion US dollars and transfer it under a loan agreement to the US government.  Formally, this is possible. 

Do not forget that the US economy is the strongest in the world, and a possible default is just a formality.

[cydrix]

Although I don't think it's just propaganda, I also don't support the default. Money printing and raising the debt ceiling are always risky, and something needs to be done about it. Unless there is a perceived serious threat, things often remain unchanged. Therefore, I believe that the default rhetoric is intended to focus on this significant issue that unites citizens and their political representatives, pushing for greater financial transparency from the government and ending the reliance on borrowing more money (even though in this particular circumstance it may be the quickest or only solution). Even if they are toying with fire, the US will be alright.

[teosanru]

Now all the news is writing about a possible default, is it real in the modern world, or is it information propaganda? How do you feel about this situation and what will happen for the rest of the world, you should be afraid of inflation or subsidence of the entire market. how to act in this situation and not lose money? It is worth now to run to withdraw money from the account or change it to the currency of other states. What kind of alignment awaits and what to analyze in general. Perhaps the extreme situation is a technical default, which does not pose a particular threat, but you need to prepare for non-standard options for the development of events.

Obviously there is no such thing as an actual default because eventually you owe everything to Fed or the Central Bank of the country. But yes practical default as you say is extreme inflation. But honestly that situation is far far away as of now. A extremely bad inflation for any country is like around 30-40% CPI level even that is recoverable in many circumstances. As of now we aren't in that scenario this sort of inflation which we have in US is pretty normal for any developing nation.

[be.open]

I think this is just the media exaggerating and sensationalizing events for dramatic effect on viewers and readers. As you know, the United States has led the economy for the past few decades. So it is very unlikely that the United States will break me. Even if the USA is about to reach the ceiling, those things haven't happened yet, have they? Therefore, we should still remain calm rather than panic, because panic will make it very easy to be manipulated by people. In general, it is still necessary to continue to follow the news every day, and in addition, it is also necessary to have a reasonable approach.

It seems you are not well informed about the current state of affairs. The US debt ceiling is $31.4 trillion, and the US external debt is already over $31.7 trillion. The debt ceiling was exceeded on January 19 of this year and, strictly speaking, a technical default has already happened. So the answer to the question in the thread title is yes. It's up to you to panic or not.

[odolvlobo]

A country that prints its own currency can't default on its debt, they would simply print more currency units if required.

While it's true that any country that prints its own currency can avoid default by printing more currency, the U.S. can still default on its debt by choosing (through inaction) not to avoid default.

The US debt ceiling is $31.4 trillion, and the US external debt is already over $31.7 trillion. The debt ceiling was exceeded on January 19 of this year and, strictly speaking, a technical default has already happened.

In sounds like you are saying that the U.S. is in default because it has exceeded its debt limit. That is not true. The debt limit itself is not a condition of default. The reason it is a factor is that the U.S. spends more than it takes in, so it must go deeper into debt in order to pay its current debts, and it cannot because of the self-imposed debt limit.

[YUriy1991]

I just wont to say The possibility of a US default is a matter of speculation and prediction but,  a US Default will have far-reaching consequences for the global economy. What I'm focus on here is the ability of the US government to work in maintaining the stability and credibility of its financial system.

I think it really depends on the trust and confidence of investors and international markets. If not, there will be doubts about the ability of the US government to manage its debt, it can cause loss of confidence, market volatility and trigger inflationary pressures and economic downturn.

[retreat]

Now all the news is writing about a possible default, is it real in the modern world, or is it information propaganda? How do you feel about this situation and what will happen for the rest of the world, you should be afraid of inflation or subsidence of the entire market. how to act in this situation and not lose money? It is worth now to run to withdraw money from the account or change it to the currency of other states. What kind of alignment awaits and what to analyze in general. Perhaps the extreme situation is a technical default, which does not pose a particular threat, but you need to prepare for non-standard options for the development of events.

The probability of the US defaulting may not be high, but the risk is there. The commotion that is currently happening is an ordinary political problem because the house of representatives is held by Republicans while the government is Democrats, of course they don't want to submit to the government so easily, they will definitely fight to be able to fight against the Biden government, but of course this problem will not lead to default to the US, it is certain that the government and the opposition will find common ground regarding this issue. It is possible that the Biden government will cut their spending budget so as not to cross the debt ceiling or the house of representatives may agree to increase the debt ceiling, but that chance seems quite small.

[philipma1957]

Now all the news is writing about a possible default, is it real in the modern world, or is it information propaganda? How do you feel about this situation and what will happen for the rest of the world, you should be afraid of inflation or subsidence of the entire market. how to act in this situation and not lose money? It is worth now to run to withdraw money from the account or change it to the currency of other states. What kind of alignment awaits and what to analyze in general. Perhaps the extreme situation is a technical default, which does not pose a particular threat, but you need to prepare for non-standard options for the development of events.

Its bullshit but politics are very polarized in USA 🇺🇸 so the dems and the reps have the power to do it.

Frankly if they do it they should be tried for treason but that will never happened.

I have watched and lived US politics for 60 years. I remember the Cuba crisis in 61-62

and a ton of shit since then.  USA pollies are greedy motherfuckers. So I do not think they have the will to crash and burn 🔥 the system.

I have a buddy that has been in banking since 1970 he says a deal will be cut no later than Monday.

[Poker Player]

I think it's all a show for the gallery, like so many other times.

I have a buddy that has been in banking since 1970 he says a deal will be cut no later than Monday.

So in reality your buddy has been working in banking since Nixon's default in 1971 ending the convertibility of the dollar into gold. It is a default that does not want to be recognized as such, but it was, going from a system that was only partially based on faith to a fiat system, which is based entirely on faith.

[adaseb]

This issue happens almost every year. There might be a government shutdown while they work to find a solution how to cut spending but they will raise the debt ceiling and won’t default. A default would create havoc and make things worse.

They already printed money like crazy so why stop now. The 1m yield for US bonds is very high. However it’s not out of the norm like with a 10-20% yield which would mean there is a huge possibility of a default. Hence why I don’t think there will be a default.

[BenCodie]

Default in such a large country is impossible, it has many allies and creditors who will help prevent this. A lot of things revolve around the United States, and such a default takes place only if it is, as you wrote, technical. In fact, it doesn't mean anything and it doesn't make sense to move from place to place and so on.

Every country is in economic turmoil, no one will go out of their way to save the US. The only savior will be who it is in debt to, the banking sector. Once the banking sector takes over the country, the country will become like a top-down managed business. Everything will be controlled, managed, tightened to be maximal efficiency for their interests, for production, for profit. The livestock (people) will serve no other purpose than to serve the interests of its new god-like leader.

This might sound ridiculous to some, however it is the message in all dystopian novels and films from decades ago til now. That's the fate of the US. How it will effect other countries is yet to be discovered.

[be.open]

The US debt ceiling is $31.4 trillion, and the US external debt is already over $31.7 trillion. The debt ceiling was exceeded on January 19 of this year and, strictly speaking, a technical default has already happened.

In sounds like you are saying that the U.S. is in default because it has exceeded its debt limit. That is not true. The debt limit itself is not a condition of default. The reason it is a factor is that the U.S. spends more than it takes in, so it must go deeper into debt in order to pay its current debts, and it cannot because of the self-imposed debt limit.

Exceeding the debt ceiling is in itself a technical default, to call a spade a spade. It's just that the word is too scary and the US government prefers to call its actions after exceeding the debt ceiling extraordinary measures. The suspension of contributions to state pension funds looks like a default.

[koleusdat]

If there is a default, it will affect many countries. News is written in advance, not knowing the subtleties. To say whether it is really impossible, there is very little information. Here they refer to the fact that a large bank has gone bankrupt and the rest may fall too.

[Argoo]

Now all the news is writing about a possible default, is it real in the modern world, or is it information propaganda? How do you feel about this situation and what will happen for the rest of the world, you should be afraid of inflation or subsidence of the entire market. how to act in this situation and not lose money? It is worth now to run to withdraw money from the account or change it to the currency of other states. What kind of alignment awaits and what to analyze in general. Perhaps the extreme situation is a technical default, which does not pose a particular threat, but you need to prepare for non-standard options for the development of events.

I don't remember exactly how many times this rumor happened, but if I'm not mistaken, it's been a topic for years, and I've never seen the US government default. I don't know what is the purpose of American politicians when they make this news every year. But if anyone still believes this will happen, it is naive and you will continue to be led by their media. I'm pretty sure that will never happen until their economy is actually challenged by China or some other great power. For now, that's not going to happen, and you'll keep hearing about it next year.

For a country like the United States to default is absolutely unrealistic. To continue fulfilling its financial obligations, the United States need only increase the amount of printing of its dollars. After all, their number does not depend either on the gold and foreign exchange reserves of this country, or on other similar factors. And I don’t see big problems with the US economy now. This problem is more contrived.
However, it never hurts to be safe. Therefore, it is better to keep part of your savings in bitcoin or other top coins.

[DrBeer]

Now all the news is writing about a possible default, is it real in the modern world, or is it information propaganda? How do you feel about this situation and what will happen for the rest of the world, you should be afraid of inflation or subsidence of the entire market. how to act in this situation and not lose money? It is worth now to run to withdraw money from the account or change it to the currency of other states. What kind of alignment awaits and what to analyze in general. Perhaps the extreme situation is a technical default, which does not pose a particular threat, but you need to prepare for non-standard options for the development of events.

The least likely option
Always, the envious of the United States consider only one side. In order not to break your fantasies
If you look at it from all angles, and not selectively, then the picture will be completely different. Yes, the United States has both high domestic and foreign debt. But there are always two sides to a coin... Have you ever considered how much other countries owe the United States? And try it. And you will understand that the US debt is "a couple of kopecks."
So if we talk about the possibility of a US default, we must talk about a global default, when all market participants will face the dilemma - total bankruptcy ... or ... total mutual cancellation of debts!

[Gyfts]

A country that prints its own currency can't default on its debt, they would simply print more currency units if required. That's been the general practice since the gold standard was done away with, except debt's been exponentially rising over the last few decades because the U.S. created a hole that they can't escape. The interest on the debt alone will consume them, requiring even more borrowing.

In general, you are right. The problem with US debts has become much worse not so much because of another excess of the debt ceiling, but because, against the backdrop of an increase in the key rate, even simply servicing debts has become too expensive. Plus, the debt problem can be compared to an iceberg, only a small part of which is on the surface. According to economists at AB Bernstein, in 2019 the total US debt burden was 1832% of nominal GDP. Since then, the situation has deteriorated markedly.

Interesting calculation. He includes future obligations in social spending to arrive at this figure which seems reasonable as there has been zero indication the U.S. would ever cut back on social security, medicare/medicaid, etc. The problem with U.S. politicians is cuts to social welfare programs are only feasible during second terms of the Presidency. One cannot simply cut entitlement programs and expect to win reelection. The congress has little incentive as well, as each of those politicians are seeking their own reelection campaigns.

While it's true that any country that prints its own currency can avoid default by printing more currency, the U.S. can still default on its debt by choosing (through inaction) not to avoid default.

Right. My point is mainly that debt default exists only in theory, not practically, which is why I mention that much of this talk of a debt default is attention grabbing for its shock value but has no actual consequences. Raising the debt ceiling just means more borrowing now and in the future. If they elect to "default" by not raising the debt ceiling, nothing changes due to the fact USD is a currency that can be generated. No one actually loses money. They just lose purchasing power as a result of the inflation that results when the U.S. decides to generate more currency units. I suppose the result would be lost confidence in USD. Though for that to happen, one would have to entirely forget previous debt ceiling raises, or that the U.S. has debt to the tune of 30 trillion. It seems as if there is so little confidence in USD, that none more could possibly be lost. I'm amenable to being corrected in this regard, as the bar just gets lower and lower for fiats. Looks to me USD holders are just riding the wave until everyone agrees the gig is up.

[Swordsoffreedom]

Now all the news is writing about a possible default, is it real in the modern world, or is it information propaganda? How do you feel about this situation and what will happen for the rest of the world, you should be afraid of inflation or subsidence of the entire market. how to act in this situation and not lose money? It is worth now to run to withdraw money from the account or change it to the currency of other states. What kind of alignment awaits and what to analyze in general. Perhaps the extreme situation is a technical default, which does not pose a particular threat, but you need to prepare for non-standard options for the development of events.

I don't remember exactly how many times this rumor happened, but if I'm not mistaken, it's been a topic for years, and I've never seen the US government default. I don't know what is the purpose of American politicians when they make this news every year. But if anyone still believes this will happen, it is naive and you will continue to be led by their media. I'm pretty sure that will never happen until their economy is actually challenged by China or some other great power. For now, that's not going to happen, and you'll keep hearing about it next year.

For a country like the United States to default is absolutely unrealistic. To continue fulfilling its financial obligations, the United States need only increase the amount of printing of its dollars. After all, their number does not depend either on the gold and foreign exchange reserves of this country, or on other similar factors. And I don’t see big problems with the US economy now. This problem is more contrived.
However, it never hurts to be safe. Therefore, it is better to keep part of your savings in bitcoin or other top coins.

They are the country that holds the world's money printing machine and specializes in exporting inflation to allied nations and the world. How can they default? The drama they created has gone viral for decades rather than just the last few years, it's really nothing new for us to discuss or fear.

I am not a fan of American imperialism, but I also never believed they would default under any circumstances. They will remain the leading country in the world, and our world will still depend on the USD. But I hope that will change soon in the future and there will be another country to take their place.

[ilovealtcoins]

If there is a default, it will affect many countries. News is written in advance, not knowing the subtleties. To say whether it is really impossible, there is very little information. Here they refer to the fact that a large bank has gone bankrupt and the rest may fall too.

The US default not only affects many countries, and I would say it will affect the world, the risk of a global economic collapse is very likely. The United States is the country that controls, dominates, and has the greatest influence on the world economy. So once they fall, we will be hit hart.
But the possibility of them defaulting is really very difficult, I do not believe the information spread in the media because politics in the US is so messed up. News is unreliable because the media can be manipulated.