well when you're spending more money on basic necessities, paying off your debt is gonna take a back seat. Bankruptcies and defaults, sir.
"In an inflationary environment it would make sense to borrow dollars to buy goods which increase in price under inflation: stocks, gold, etc."
That is just not so easy when you're spending 90% of your paycheck on food, rent, power... Who will loan you the money knowing you're a default risk?
"Congress will never default on the debt. The debt is in dollars and congress has the power to print dollars. We are going to print our way out of debt."
i agree. The end result is hyperinflation. But I reserve the possibility that congress will come to its senses, do the hard thing, and default.
"In an inflationary environment it would make sense to borrow dollars to buy goods which increase in price under inflation: stocks, gold, etc."
That is just not so easy when you're spending 90% of your paycheck on food, rent, power... Who will loan you the money knowing you're a default risk?
"Congress will never default on the debt. The debt is in dollars and congress has the power to print dollars. We are going to print our way out of debt."
i agree. The end result is hyperinflation. But I reserve the possibility that congress will come to its senses, do the hard thing, and default.