Debt limit hit, why not just default?

A default doesn't necessarily clean the slate. Defaults are frequent throughout history. The empire either crumbles or the payments are simply delayed -- with more interest.

And should a complete default occur you better get your shotgun loaded.
 
Quote from noob_trad3r:

http://money.cnn.com/2011/05/16/news/economy/debt_ceiling_deadline/index.htm?hpt=T1

Trump did it several times and people still do buisness with him and lend him money.

people do it all the time and get credit card offerings in the mail 3 months later.

Why not just default and start with a clean slate?
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Trump's a bully. His mama read him the parable about the squeaky wheel getting the grease.

To answer your question, it's the SAME reason why you accept a dollar bill. It's backed by the full faith and credit of the US Government (and basically nothing more).

The lesser of two evils is to perpetually de-base and ultimately pay back debt (actually interest rather than principal in CHEAPER dollars).
 
Quote from efficiency:

Trump's a bully. His mama read him the parable about the squeaky wheel getting the grease.

To answer your question, it's the SAME reason why you accept a dollar bill. It's backed by the full faith and credit of the US Government (and basically nothing more).

The lesser of two evils is to perpetually de-base and ultimately pay back debt (actually interest rather than principal in CHEAPER dollars).
More...

You think its possible to borrow at a fixed rate and then see inflation exceed that rate? Are there careless bankers out there who might overlook this possibility?
 
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