What is the actual penalty if the US national debt is not paid off?
Question by Alex: What is the actual penalty if the US national debt is not paid off?
Everybody always complains that our country is in debt, and I understand that and that the debt is constantly rising, but what will actually happen if the country does not pay off the debt? I also understand that the US is indebted to many different countries, so would there be penalties from each country that the US does not pay back? How does it work?
Answer by cantcu
Interest on the debt, which is about 1/2 of the National budget and is untouchable.
If they don’t pay it back, I assume these countries would be in court trying to seize our assets.
We have a lot of options, to include cutting off the oil subsidy at $ 60 billion, The farm subsidy at $ 20 billion, the Ethanol subsidy at $ 7 billion, among others.
We can also glean another $ 400 Billion a year by letting the Bush tax-cuts expire for the top 2% in America. We can cut defense spending and pay down the debt which would decrease the amount we owe and have to pay interest on. We are not broke.
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