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The US will print money to pay off debts

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Guest Scáthach

With the US debt ballooning to a new record of $16.7tln and the deadline to fix the ‘debt ceiling’ expiring on October 1, a default threat looms over the world’s largest economy.

 

As of September 25, the US Treasury reported its federal debt at $16,699,396,000,000.00 in their daily treasury statement, a figure which has been reported for 130 days straight, situating spending about $25 billion shy of the legal limit of $16,699,421,095,673.60.

 

Treasury Secretary Jacob Lew calculated the US would run out of money by October 17 and have less than $30 billion cash in hand if Congress fails to pass its spending bill by October 1, when the new fiscal year starts.

 

“The United States can pay any debt it has, because we can always print money to do that. So there is zero probability of default,” Alan Greenspan said on NBC's ‘Meet the Press’ in August.

 

http://rt.com/business/us-debt-ceiling-default-384/

 

 

 

 

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If they print money to pay off their debt then naturally that devalues the currency.  I can't see the Chinese and other creditors being overjoyed at Uncle Sam trying to pay them in monopoly money.

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