Joe Doakes from Como Park emails:<\/p>\n
Everybody knows the US can never retire its debts \u2013 we owe like 20 trillion dollars.\u00a0 More, if you count the value of unfunded promises like Social Security and Obamacare.\u00a0 But everybody also knows you can\u2019t cut spending \u2013 can\u2019t even propose a smaller increase in spending \u2013 because the media would bury you.<\/p>\n
And with Bernie riding the \u201cfree stuff\u201d horse into the White House, it\u2019ll only get worse.<\/p>\n
So \u2013 three possibilities:<\/p>\n
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- America is unique in history: we never pay the debt and nobody ever cares, it\u2019s all imaginary money anyway, in which case, why not spend even more, give away even more, and everyone can be rich forever?<\/li>\n<\/ol>\n
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- Somebody calls the debt and the US Government can\u2019t pay it.\u00a0 It\u2019s happened before, after the Revolutionary War.\u00a0 The resulting economic chaos was mitigated because 90% of the citizens lived on farms where they were used to primitive life and had a chance at being self-sustaining.\u00a0 This time around, 90% of the citizens live in cities that will run out of food and water in days.<\/li>\n<\/ol>\n
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- We figure out a way to write off the debt and start fresh, but without a calamitous economic crash.<\/li>\n<\/ol>\n
We\u2019re living as if Option 1 was guaranteed and Option 2 cannot happen.\u00a0 I\u2019m not convinced that\u2019s true.\u00a0 \u00a0Option 3 is never discussed.\u00a0 Is that because it\u2019s not technically possible?\u00a0 Because it\u2019s not politically feasible?\u00a0 Or because Americans are reluctant to give up the dream of a free lobster in every pot and a free Cadillac in every garage?<\/p>\n
<\/p>\n
Joe Doakes<\/p><\/blockquote>\n