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Re: This Is One Scary Clock
Quote:
Originally Posted by Schneed10
It's not dissimilar to someone deciding not to pay back a student loan. You can do it, but your credit will take a major hit, and any time you want to borrow money for something ever again you'll pay a much higher interest rate.
If we blow off China, the next time we need to borrow money from someone (and we will) we'll have to pay a much higher interest rate. It would crush us in the long run.
The only way we can go without borrowing money from people is if we cut governmental spending to the point that we're no longer running a deficit. Which is a lot.
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That's along the lines of what i had assumed, but I know nothing about macro economics. So, given that defaulting isn't a legitimate option, when do we put the breaks on spending? Always kills me that the gov operates like a teenager with their first credit card... Anyway, thanks for the info.
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Thomas Paine
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