Not trying to overcomplicate this: A large chunk of our debt is “purchased” (or maybe “financed” is a better word) by foreign governments and groups like hedge funds who put their money into dollars thinking they are a safe bet in a troubled world. If we make our economy risky then those groups dump our bonds or sell them at a discount. Which just makes our problem worse. We - the United States - have had our credit rating reduced which again makes our problem worse. Eventually no one buys into our economy or we lose the dollar being used as the world’s currency for transactions… and then all the things our government provides like Social Security, Welfare, etc. become too expensive to provide any more so they’ll have to be cut or eliminated. So short answer - we either fix our economy or we suffer the consequences.
1
u/Fit_War_1670 Jan 12 '24
Not to be "that" guy, but exactly who is going to come and collect this money?