As I’ve said many times, there is no realistic way we can honestly repay this debt. It’s just too great and we don’t have the fiscal discipline to even consider paying it off. No one even pretends any more. But, of course, we will pay dearly for having incurred it.
It is amusing, however, in a disturbing way, to imagine how our leaders might announce a decision to get serious about paying this debt.
The following is a paraphrase of something I heard in a speech by Peter Shiff.
Now put yourself in the shoes of the Chinese. They are working hard to make stuff for us to buy. They save over 50% of what they earn, they deposit it into their savings accounts and their banks loan it to us. Does that sound like a wise move in light of what I wrote above? Would you continue to loan the US money you know it can never repay and will not repay even if it was possible to do it? I wouldn’t. And the day is fast approaching when they won’t either.