When Does The Us Have A Currency Or Debt Crisis When Does The Big One Hit

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.