Post
Topic
Board Economics
Re: When US debt ceiling is lifted . . .
by
nosfera2
on 29/06/2011, 11:14:56 UTC
So US citizen paying more taxes to pay the interest ?

The US government prints more dollars to pay for the interest, the value of the dollar goes down and the US citizens pays more for everything they buy. That's how it works.  Until one day the dollar is so weak that it crashes and becomes worthless because no one will want it any more. The only reason the dollar is not much worse off right now is that the Euro is on shaky ground too.