That foreign investors don’t find US instruments attractive is evident from the fact that the Treasury is about to issue inflation-indexed bonds. We are not only in deep debt, we are–as you say–about to make it grow exponentially greater because inflation is sure to follow the policies of this Administration.

It might be worthwhile for you to elaborate upon the consequesnces of default as it would affect different groups. Your article is oriented more towards the investor class and how a default would affect the value of financial assets.

Given that a large percentage of the American public is dependent on government transfer payments in one form or another, from Social Security to Medicare, the inability of government to meet these obligations through foreign borrowing could end in cessation of these programs. Given that somewhere near 40% of the public are dependent upon these transfer payments for most or all of their income, outright cessation of the programs would lead to a precipitous decline in purchasing power and an outright deflationary depression.

The alternative, printing money, leading to hyperinflation, would allow continuance of the programs only by payment in inflated dollars, meaning that the “real” value of the benefits will decline. Of course, this negatively affects purchasing power, leading to an inflationary depression (think Weimar Republic).

It is regrettable that opinion leaders on both sides of the aisle are silent on the consequences of governemnt policies.

That foreign investors don’t find US instruments attractive is evident from the fact that the Treasury is about to issue inflation-indexed bonds. We are not only in deep debt, we are–as you say–about to make it grow exponentially greater because inflation is sure to follow the policies of this Administration.

It might be worthwhile for you to elaborate upon the consequesnces of default as it would affect different groups. Your article is oriented more towards the investor class and how a default would affect the value of financial assets.

Given that a large percentage of the American public is dependent on government transfer payments in one form or another, from Social Security to Medicare, the inability of government to meet these obligations through foreign borrowing could end in cessation of these programs. Given that somewhere near 40% of the public are dependent upon these transfer payments for most or all of their income, outright cessation of the programs would lead to a precipitous decline in purchasing power and an outright deflationary depression.

The alternative, printing money, leading to hyperinflation, would allow continuance of the programs only by payment in inflated dollars, meaning that the “real” value of the benefits will decline. Of course, this negatively affects purchasing power, leading to an inflationary depression (think Weimar Republic).

It is regrettable that opinion leaders on both sides of the aisle are silent on the consequences of governemnt policies.