I agree that neither The 100 7 Years 100 Episodes 7 Season Thank You For The Memories Signatures Shirt USA nor China can afford the insolvency of the USA in the debt market so that will not happen and the USA knows that will not happen. I’m not suggesting that China would enforce its rights under the bonds and try to bankrupt the USA. If you mean the US can print money to pay off the debt you are technically correct. However, the inflationary effect would have the same practical effect. China’s economy is dependent on buying US debt. If they stopped to “collect” they would be undermining their own economy.
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That seems quite The 100 7 Years 100 Episodes 7 Season Thank You For The Memories Signatures Shirt unlikely for the US at this level. The dollar is still the world’s reserve currency. The debt would probably have to get a lot higher unless China was to stop purchasing treasurers and/or started selling them em mass. Sure, it’s not good to carry this much debt. I’m just saying that the 100% level isn’t a magic number at which we now owe more than we’re worth. Debt-to-GDP is a metric that is still totally relevant because it’s a relative value.
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