I have discussed this before, either here or at Kerodin, I can't remember.
Implosion is imminent. Once Implosion occurs, China will be told to eat the debt. We simply will not pay. Once Implosion occurs, Entitlement programs will end. No money to redistribute = No money for Entitlements.
But Implosion need not be imminent. How? America tells China to eat the debt before we implode. America stops taxing and spending on Entitlements before we implode.
Looters are shot.
We'll still have a Ruckus, but not a national economic Implosion, because the producers in this country will continue producing, income taxes will remain in American pockets instead of in the Treasury and FedGov will only feed from the trough of excise and imports, so long as we can kill the parasites who would rape, pillage and plunder.
That is how we avoid Implosion.
Now, ask me what I think the odds of that happening are, realistically.
Implosion is imminent.
Kerodin
III
A more likely option: we devalue our currency* enough so we can pay off our debt, then the Weimar Republic-like hyperinflation brings about the implosion and Ruckus.
ReplyDelete*oops, sorry, I mean "engage in more quantitative easing".