On Nov 26, 2012, at 8:57 AM, Carrol Cox wrote:
> I have a question.
>
> What would happen if the U.S. government simply repudiated its
> national
> debt?
>
"Simply?" No, impossibly. The Fifth and Fourteenth Amendments make it
unconstitutional. Moreover, the debt is a nonexistent problem for the
US, which is a sovereign whose debts are denominated in its own
currency, because every $ of it can be retired at maturity without any
effort via coin seignorage (the debt, assets to bondholders, being
replaced by equivalent assets: positive reserve balances at the fed).
Shane Mage
This cosmos did none of gods or men make, but it
always was and is and shall be: an everlasting fire,
kindling in measures and going out in measures.
Herakleitos of Ephesos