So, what happens when we start defaulting on our loans?

I remember when it topped one trillion for the first time and being freaked out. That wasn't very long ago

Edit: I'm wrong, it hit a trillion in the 80s. I thought it was much more recently

I recently watched a very educational Gary's Economics video about government debt, called 'to lower taxes we need to raise taxes'

Basically since Reagan and Thatcher, the super rich have accumulated real assets that used to be owned by the government and the middle class.

Under capitalism, wealth creates wealth in an exponential manner. Now the wealthy own almost everything.

Government services cost more because governments sold most of their assets and have to pay the private sector to deliver services. At the same time, the required level of services is higher because more of the population is living in poverty.

The only way to reverse this and escape feudalism is to tax wealth. But even this would be slow. There needs be a lump sum transfer of the majority of assets back to the people. We would have to seize >50% if assets on death.

And the penalty for companies breaking the law should be mandatory acquisition by the govt at severe discount.

Gross

USA using the credmaxing method of money generating.

Fire up the money printing presses. Sorry to all the bagholders hoarding US dollars for retirement. I'm afraid we need to make your savings worth a fraction of what it once was.

The entire notion that an entity, which holds the exclusive monopoly on the supply of the currency its budget is denominated in, can in any way be considered to be exposed to debt in that currency which can be framed a problematic is, at best, farcical.

That ‘national debt’ is merely the tally of the legitimate quantity of the currency in existence. If it’s too much, they hold the equal monopoly of removing it through taxation, and the easiest and most effective point to do that is where it its concentration has accumulated the most.