What happens when debt to GDP hits 200%? Does shit fly apart?
>>60739751 (OP)the inflation we had a few years ago was just the start
Taxes go through the roof, every service is cut to the bone
In a hypothetical scenario where the debt becomes truly unsustainable the US could just default on it.
These are the largest holders of US debt. I have highlighted (in yellow!) countries that would be unable to retaliate in any way if America defaulted on them. Subtract the values held by those countries from the total debt pile and you will have a better picture of what the REAL debt is like (VERY SMALL!).
Ask japan(spoiler: nothing ever happens)
>>60739751 (OP)Yes, it's exactly like when humidity hits 100%, air turns into water and we all drown instantly
>>60739794This would cause a total economic collapse...
>>60739901No it wouldn't. Those countries won't do shit.
>>60739916Most of the debt is held domestically, not by these countries. Everyone holding T-bills would be fucked if the US defaulted