Will the US go bankrupt?

[mistermack]

It would make a lot of sense. If you have huge debts, dump them. The USA is big enough to withstand the flak.

And Donald know's all about how to make bankruptcy pay. He will blame the lenders for being reckless with their lending, and blame previous administrations for borrowing it all.

He's perfectly capable of thinking the unthinkable.
I would be resisting any temptation to buy US debt, if I were in that business.
And I would be downgrading it, if I was an analyst.

[pErvinalia]

they probably could do that. But consider, they'd have to pay higher interest on foreign borrowings after that point.

[Brian Peacock]

The US government will run out of money on 29 April unless Congress vote for a budget. In the past majority congresdional Republicans have done this to put pressure on Democrat administrations. If this happens again this year Congress Republicans will effectively be applying pressure to themselves, while signalling open season on Trump. They'll have nobody to blame but themselves, so I cant see that happening.

On the wider point, while international oil transaction continue to be carried out in US$ America retains a license to (literally) print money. No need for clever accounting as long as there's still oil in the ground.

[rainbow]

The US is technically insolvent.

If it were a business, it would be advised to declare bankruptcy, and go into business rescue.

[mistermack]

they probably could do that. But consider, they'd have to pay higher interest on foreign borrowings after that point.

That would be heavily outweighed by paying NO interest on the money they owe now.
Not only no interest, but no repayments either.

Since most of the new borrowing (if not all) is done to balance out the interest and repayments they are making, it would take decades for the US to actually need to borrow anything new. If ever.

As a financial move, it would be devastating to the lenders, but not to the US.
And Trump knows that only too well. He's done it many times. What has it done to HIS borrowing costs? And does he care?

They still elected him President, so he hasn't even taken a knock reputation-wise.
Countries like Greece can't carry it off, but the US definitely could.

[Brian Peacock]

If the US effectively massively devalues its currency by some technical measure then the whole world suffers the consequences. I reckon the main problem is rooted in the systems of international usury that result from differently/inconsistently regulated financial markets. Perhaps we're getting to a time where a global currency is needed - though that would require a global government and a global regulator to work. The EURO was a tentative step in that direction, but that has just highlighted that while political parties in individual nations are willing to hold out for particular advantages political agreement, and therefore financial stability, is nigh on impossible. Still, it was a good idea.

[Galaxian]

"Will the US go bankrupt?"
NO! The US doesn't have any debts at all for 2 reasons:

a) It prints however much money it wants; digitally from the Federal reserve.
b) It'll destroy any country that wants its money back or wants to leave its "protection" racket.

China has already been warned not to expect any of its loans back... Initially, they'll all be 'confiscated' if it tries, under various excuses, such as 'terrorism', or 'fines' for emissions or 'unfair' exchange rates, etc.
Ultimately, if the initial bullying doesn't work, they'll simply be wiped out, hence no debts.