patrick.net

The great reset will take care of all of that.
“We are at a turning point of humankind - we should not underestimate the historical significance of the situation we are in," Klaus Judas Schwaub

The worst thing about this is the people who own the debt are often not Americans but rather foreigners.

So, you’re going to work and pay interest to guys in China, UK, Japan, Norway, Saudi Arabia, etc.

Taxing you lowers your standard of living; sending our money overseas lowers the USA standard of living.

So foreigners own 37% of $20.83 trillion according to the above.

That’s a lot of interest to pay overseas.

Also, the Federal Reserve is going to sell its bonds
(debt) , and foreigners will buy some of it.

HunterTits says

Since 2020, the Fed has monetized most debt issued by the US government, too.

China's max holdings of US debt was in 2014 and they gradually reduced it since then.

The Fed has monetized debt since 2008, the Great Recession, with at least $4 trillion in QE back then.

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HunterTits says

This will change the equation on what is 'too much debt' for the US.

Its the member banks of the Federal Reserve who own the debt as well as 401k and IRA investors. I do as most of my IRA is in a balanced fund 60% bonds and 40% stocks.

So it is to suffer inflation or have the government default. I expect the Fed and government wants to inflate out of this crisis instead of just defaulting and telling those bond holders that they will only get paid 75 cents on a dollar.

Inflating out of a crisis is more of a subtle way of paying 75 cents on a dollar.

There is a lesser chance of public outrage (and bloodshed or violence) as it gets drawn out over a few years with inflation outstripping income (i.e., wages, investments, social security and pensions) growth by a few percentage points. In a way it is a tax to help sustain the monetary and fiscal systems.

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