Post
Topic
Board Beginners & Help
Re: Is American Debt default really possible??
by
Iseree22
on 20/09/2011, 16:07:28 UTC
Your not getting it. The US doesn't "pay" anything. They discharge debts via tendering paper promises. It doesn't matter what the US owes. As long as people accept as valuable the paper, the debt is discharged.

Perhaps I'm wrong, but given U.S Treasuries are denominated in 'Reserve Promises'. If there are not enough 'reserve promises' in circulation, then that is a default.