One keeps hearing about the deficit of the US government has and it’s true. But the problem is can we pay off our debt and if we don’t pay off our debt, can we still live off our taxes and continue debt?
One of America’s biggest problem is Social Security that has been underfunded and now we’re paying the money that is owed to the Trust fund. It doesn’t take a genius to understand that if America had eliminated the cap we wouldn’t have to worry until years in the future about paying off billions and more.
America is firing many of its government workers (even though they are firing workers who will not be receiving pensions) the pensions may not be able to cover all it’s obligations in the near future.
America under the present administration is just about giving away it important assets such as timber and oil leases ( drill baby drill)
When America goes into an economic decline of its labor force( recession ) the tax base shrinks, less money into the treasury.
If there is less discretionary funds buying bonds and foreigners and governments not buying American bonds, another red flag.
If the Federal Reserve doesn’t buy the old bonds an other red flag.
* All these things do not have to happen to have a default, and it isn’t the amount of debt that important, it’s the ability to pay.
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