The US Debt Crisis – For Normal People

There has been a lot of fear and speculation on the part of different talking heads about what would happen if the United States government defaulted on its war loans and couldn’t pay it’s bills anymore. People who make billions of dollars by mind raping people way smarter than them want us to think that means our power will suddenly turn off, all of our soldiers will immediately die, China will drop giant bombs, and every third person will immediately resort to violent cannibalism.

I understand that you are afraid. Glenn Beck and the people like him have spent millions of dollars trying to make you afraid, because they can control you with fear.

Think about it a slightly different way, though. Firstly, what happens when you don’t have the money to pay your bills? You don’t exactly default on your loans the very first time you miss a payment. In fact, 1 late payment in 235 years isn’t even going to really effect the US’s credit all that much. Even if it does, it’s not like we’re looking to go out and buy a new car any time soon. Afterall, we just bought a couple of car companies a few years back.

No, if you’re late on a payment, you get a phone call, and they charge you a late fee. As someone who’s credit history looks like I was actively destroying it, I’m pretty familiar with this whole process. They don’t even start showing up at your house to repo your crap until at least 3 months behind.

So, we actually have a lot more time to get our crap together than people realize. This entire deadline thing is a scare tactic, with both the Democrats and the Republicans using it to fuel the fear they maintain control with. Of course, all that blustering falls under a very huge false assumption:

They Want You to Be Convinced That The United States Can’t Pay It’s Bills

That entire statement is bullshit. We can never default on the loans we have right now. You want to know why?

We don’t actually owe anyone real money.

But, Matt, you imaginary readers are shouting, we owe China like $843 BILLION! You probably didn’t notice the most important part of that statement… the “$”

We owe china 843 Billion United States Dollars. Not the equivalence of that, but that actual amount.

Basically, that would be the same as me convincing you to let me pay you for your goods and services in Mattbucks, which are printed paper with my ancestors on them, then borrowing a bunch of Mattbucks back from you. I could give you the same Mattbucks back, but I don’t have to. I can print more Mattbucks. There might be an exchange rate between Mattbucks and Dollars, but, you didn’t agree to that when I borrowed them from you. You didn’t loan me $5 worth of Mattbucks, you loaned me 5 Mattbucks. That’s what I have to pay back, and I decided how many of those exist in the world.

It’s called Sovereign Currency, and the US has it. Basically, we’ve conned quite a bit of the world (our own citizens included) into believing that our green pieces of paper are worth something other than being green pieces of paper, and because of that, they are.

We’re not alone, Japan, Australia, and the UK have it too.

It is simply impossible for us to default on loans, because we have literally an infinite amount of money.

So, there is absolutely nothing to fear about August 2 (or 10th, or ANY day after that). The debt ceiling is a purely political scare tactic, at least for now.

China has realized what we’re doing, and has started pushing for one world currency. Then, nobody gets free money anymore.