Will the United States default on foreign debt?
I came across an interesting article on Bloomber yesterday about Japan concerned that the United States might default on our debt. 40% of Japan’s investors are afraid we might not be able to pay our debt. Right now the US has about 10 trillion in debt with a projected ~50 trillion if we were to include debt that is not yet due for Social Security and other government programs.
I personally think it’s inevitable that eventually all our debt will cause serious problems, the government with all that it tries to do with giving away foreign aid and failing to live within its means as we all should. I think it comes down to two different options, one we will default on our debt or two the more realistic option is we have the federal reserve print more money which basically destroys the value of our currency.
What are your guy’s thoughts on all of this?
The link to the main article is here.