1. If the debt is denominated in US dollars, there's no way the US is going broke.
2. There's no OPERATIONAL limit for the US when it comes to spending its own US dollars.
3. The US marks up the accounts of the US debt creditors when payments on the debt are due.
4. The US will never run out of US dollars. That's just impossible.
5. The debt ceiling is a POLITICAL arrangement. It is a self-imposed constraint. It has been adjusted several times.
6. If we were on the gold standard, the US could run out of gold. But we are not on the gold standard.
7. Japan's national debt amounts to 196% of its GDP. That debt is denominated in Japanese yen. Japan will never go broke if the debts concerned are
denominated in yen. It can, however, run out of US dollars and thus have a hard time importing stuff. But it'll never run out of yen. Japan can owe
(in yen) 1000% of its GDP if it chooses to. The size of the national debt - and the size of government for that matter - is always a POLITICAL choice.
This choice is usually made by the ruling elite. There's no such thing as running out of your own national currency. "They" know it.
8. The more important thing is who owns the debt. The size of a country's national debt, provided it is denominated in the money that is accepted to
pay taxes in that country, is a never a solvency issue. The national debt can be huge or tiny; the elite chooses how large or small it'll be.
9. When the elite wants to control upward social movement (that is their "default mode" - it's all they care about), they load the private sector
with debt. They even load their own banks with debt in the process. They know their banks will be bailed out later, because they understand that the
US government can't run out of US dollars.
10. When the elite can't squeeze the people any longer, they revert to sucking on the government. When the elite can't just keep sucking financial
resources out of you, because you don't have disposable income (all those student loans, credit cards, housing and insurance payments just can't
grow any more or there is the possibility that these debts are not going to be paid), they revert to sucking money out of the government.
11. The elite only resorts to quantitative easing and similar tactics when it can't make the people poorer. All the elite cares about is increasing
social polarization. Money is just one of the tools used for this end. They'll try doing this until there are two species of human beings. Then their
great work will be crystallized. But that is another topic, one that I'm sure you all know a lot about.
12. The US is the only country in the world whose external and internal debt are both denominated in US dollars. The US is different from all other
countries when it comes to monetary sovereignty. The fact that the US "chooses" to use this exorbitant privilege to increase social polarization and
benefit the rich instead of using it to advance public purpose is a different issue. The US is an amazing wealth extraction tool, as are almost all
other countries. The US is just a more powerful tool. A proper tool for great works.
13. Eurozone countries are like US states; they are currency users, not currency issuers. They are not sovereign when it comes to money. They are all
external debtors (Germany included). Only the ECB can spend euros limitlessly. Spain, Portugal,Grece, Germany and all other eurozone countries are
operationally limited when it comes to spending euros. They have to earn before they spend, or borrow to cover debts. They can't just credit accounts
like a central governement that issues its own currency can.
14. Almost all currency isssuers run governement deficits almost all the time. The only way to run a government surplus and increase private savings
is to have an external surplus. This is a matter of national accounting and is not subject to opinion. The sectoral balance equation [(S – I) = (G
– T) + (X – M)] is undeniable. Please understand this chart:
15. All "the US is going broke" talk is propaganda. The financial system changed back in 1973 (1971 if you want to use Nixon's decision as the main
reference point). A country that issues its own money can, since 1973, owe the amount it (its ruling elite, actually) chooses to owe. Again, the size
of the national debt is a political decision, and the ruling oligarchy has the power to decide. Many Maroeconomics textbooks are outdated when it
comes to this critical issue. By the way, books are by far the most efficient form of strategic long-term propaganda.
16. The people that use the US government as tool for reaching their strategic objectives will always sabotage countries that attempt to stop using US
dollars as a means to solve their external obligations. The owners of the US have a great thing going on. As George Carlin said, 'it's a big club,
and you ain't in it".