What Happens When Usa Has No More Money For Anything

Will anything happen when the United States’ national debt hits $20 trillion or $30 trillion?

Mr. Clement (below answer) has no concept of the differences between U.S. finances and Italy’s finances, so his answer is 100% wrong.Italy is monetarily NON-sovereign. It has no sovereign currency. It uses the euro, the sovereign currency of the European Union. Italy can, and has, run short of euros.By contrast, the U.S. is Monetarily Sovereign. It has its own sovereign currency, the U.S. dollar, which it has the unlimited ability to create. The U.S. government never can run short of dollars. It has the unlimited ability to service any creditor’s request denominated in dollars.As for the U.S. government “debt,” that is nothing more than the total of deposits in T-security accounts. When you “lend” to the federal government, you actually transfer dollars from your checking account to your T-security account, where your dollars are held.To pay you back, he federal government merely transfers those dollars back from your T-security account to your checking account.In short, it makes no difference whether the federal debt is $14 trillion or $140 trillion; the government easily could repay it simply by transferring existing dollars from those T-security accounts back to the checking accounts of T-security owners.Your question is identical with this: “What happens if my savings account becomes too large?” The answer: You would transfer dollars out of your savings account back to your checking account. Simple.By the way, back in 1940, the federal “debt” was $40 billion, and the bankers referred to it as a “ticking time bomb.” Today, the debt is about $14 Trillion, 365 time higher, and the “time bomb” still is ticking.The people who tell you the federal debt is too big, or is “unsustainable” (a favorite word) simply do not know what they are talking about. What’s really unsustainable is debt reduction:U.S. depressions tend to come on the heels of federal surpluses.1804-1812: U. S. Federal Debt reduced 48%. Depression began 1807.1817-1821: U. S. Federal Debt reduced 29%. Depression began 1819.1823-1836: U. S. Federal Debt reduced 99%. Depression began 1837.1852-1857: U. S. Federal Debt reduced 59%. Depression began 1857.1867-1873: U. S. Federal Debt reduced 27%. Depression began 1873.1880-1893: U. S. Federal Debt reduced 57%. Depression began 1893.1920-1930: U. S. Federal Debt reduced 36%. Depression began 1929.Increasing the so-called “debt” grows the economy and cures recessions.

What would happen if the U.S dollar was worth nothing?

See this spilled ink? It’s a great metaphor.Almost every time we make a trade we are better off using currency. It makes our trades better. Trades make both traders happier. Much happier. Currency makes both traders trade more. Happier still. How much more? Well that depends on the costs of making a currency, but more on what kind of trades we can find. From the things we want. What we want spills like ink over into everything on this planet. Every trade sucks up more value and imbues more things with value. Our needs fills everything with value.When we see a tree we think that the wood is made of stuff from the ground. In stead it is made from air. From C02. The tree is sucked up in the air, instead of pushed up from the ground.When we see a single dollar we think the value is given to it by governments or minters or the debt it is created from. Instead the value comes from our needs. The ink of our want has spread into the dollar paper making it worth something. Trades make currency get value. And every thing in the value chain is eventually worth something.So when ever you see things of value remember nothing is pushing it to be valuable. It’s our wants that pulling the value in it. Dollars are worth something as long as currency makes trading easier and therefor more valuable. Not because governments say so. Not because a banker exchanges it. Those are just costs.