Is defaulting on our debt a bad thing?

John_C_87

Not as bad as creating a method of ledger which does not hold the debt in a factual value........

MayCaesar

Suppose you take a loan from a bank and then say, "I am not going to repay it". What will happen? In many jurisdictions you will not face any legal persecution, and while you might be harassed by debt collectors for a long time, they have no legal power over you and you are free to deny their requests.
However, virtually all financial organizations in the world will now have access to the entry in the database under your name that testifies that you have taken on a major financial obligation and failed to fulfil it. Next time you go to a bank and ask for a loan or a credit card, the bank will look up your name in its database, see the red flag and send you away.

It is no different here. If the US government defaults on its debt, then all of its creditors - both current and prospective - will lose trust in the system and take their money elsewhere. The government will be forced to either shrink its operations so that they can be funded from the tax income alone (seems unlikely, given how hungry it has grown by now), significantly increase the taxes (very unpopular measure leading to complete obliteration of the current representatives in the next election), or extort loans from the creditors (a tyrannical measure changing the status quo and making both the domestic population and foreign powers see the US in a very different - and not a positive - light).

If all else fails, defaulting on debt might be a lesser evil than letting the spending run unchecked indefinitely, leading to eventually economical collapse of the system - but it is far-far better for the government to actually fulfil its obligations, just like every respectable debtor does, and maintain budget surplus.

John_C_87

@MayCaesar

A You will need to file for chapter 11, chapter 12, or chapter 7 protection is what will happen.

It is no different here.

Oh yes!..... there is a big difference the first is National Debt is like all debt held by governing and orbits around the legal claim being made on why money is owed. It is not a default to legally stop and hold some payments. We are delving into the nitty gritty as to why then American Civil War had taken place. Spending barrowed money is aways subject to legal terms and the terms may be held as American Constitutional right or private terms of a lending institution.

Barnardot

@jack This can really get out of hand really because what happened one day is that my wife got a second hand neon 2 years ago and she missed only one week of the payments and it wasn't even her fault because she got sacked from her job and she couldn't pay the re payment that week any way. So without any warning at all these 2 really big black guys from the loan office knocked on our door really early in the morning and made all kinds of threats and it was lucky that my brother was staying with us and we ended up chasing them down the streets with our base ball bats.
So what Im saying is that defaulting on your debt is not a bad thing its just that bad things can happen to you even if it wasnt your fault.

John_C_87

@MayCaesar

13th Congress shall have power to enforce this article by appropriate legislation.

14th The Congress shall have the power to enforce, by appropriate legislation, the provisions of this article.

15th The Congress shall have the power to enforce this article by appropriate legislation.

16th The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.

18th The Congress and the several States shall have concurrent power to enforce this article by appropriate legislation.

19th Congress shall have power to enforce this article by appropriate legislation.

U.S. Constitution - Thirteenth Amendment | Resources | Constitution Annotated | Congress.gov | Library of Congress

Congress has in writing set the stage for massive civil lawsuits as a means to overstate the economies’ true size by legislating the cost of settlements and outcomes of trial as part of a payment made into National Debt. Do you see the trend were a United State Consitutional right is written in to not one but several Amendments in the same way. This is a the beginning of the danger signs as it is showing that the States are not holding a Consitutional right as a United State.

The First Amendment guarantees freedoms concerning religion, expression, assembly, and the right to petition.  It forbids Congress from both promoting one religion over others and also restricting an individual’s religious practices.  It guarantees freedom of expression by prohibiting Congress from restricting the press or the rights of individuals to speak freely.  It also guarantees the right of citizens to assemble peaceably and to petition their government.   

First Amendment | U.S. Constitution | US Law | LII / Legal Information Institute (cornell.edu)

Amendment I

Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the government for a "redress" of grievances.

redress : to set right : REMEDY

looked to charity, not to legislation, to redress social wrongs—W. R. Inge

(2)

: to make up for : COMPENSATE

b

: to remove the cause of (a grievance or complaint)

c

: to exact reparation for : AVENGE
Redress Definition & Meaning - Merriam-Webster

The First Amendment guarantees freedoms concernig...No the 1st Amendment doesn't guarantee anything of that nature. What the 1st Amendment has done is guarantee that goverment can attempt to set right, attempt to compensate, and attempt to avenge by self- appointed powers of what was once the courts as united state. It has given powers to raise national debt as litigation settlements by use of Exsecutive order delaying, obstructing, or ending legal filings.As I quote "Remedy,  compensation, and avenge." It is only the preamble of the American United States Consitution which ensures in writing liberties which includes those proven by creator as free.