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Why A National Debt Default Now Looks Genuinely Possible... (sort of)

How Money Works 18:38

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#finance #debt #economy

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Sources (In Order)

https://thehill.com/opinion/finance/575722-the-us-has-never-defaulted-on-its-debt-except-the-four-times-it-did/

https://www.npr.org/2026/09/01/nx-s1-5950593/a-treasury-showdown-with-the-bond-market

https://www.npr.org/2026/08/19/nx-s1-5937552/the-u-s-debt-tops-a-record-shattering-40-trillion-yes-with-a-t

https://fred.stlouisfed.org/series/GFDEBTN

https://taxfoundation.org/research/all/federal/big-beautiful-bill-senate-gop-tax-plan/

https://www.csis.org/analysis/unpacking-15-trillion-fy-2027-defense-budget-topline

https://www.nytimes.com/2026/09/01/business/bond-yields-debt.html

https://www.imf.org/en/blogs/articles/2025/09/17/global-debt-remains-above-235-of-world-gdp

https://www.politico.com/news/2026/08/25/purely-just-up-to-iran-bessents-d-day-unlikely-to-end-war-calm-energy-markets-01049825

https://www.yahoo.com/news/politics/articles/trump-suggests-military-bond-markets-222513278.html

https://www.theguardian.com/business/2026/aug/25/us-treasury-scott-bessent-bond-buying-donald-trump-stanley-druckenmiller

https://www.ustreasuryyieldcurve.com/

https://fred.stlouisfed.org/graph/?g=1UU0w

https://fred.stlouisfed.org/series/D2WLTGAL

https://www.fidelity.com/learning-center/smart-money/treasury-bills-vs-bonds

https://www.newyorkfed.org/medialibrary/media/research/staff_reports/sr1170.pdf

https://www.stlouisfed.org/publications/regional-economist/2023/may/interest-rate-risk-bank-runs

https://fred.stlouisfed.org/graph/?g=1cjA9

https://www.congress.gov/crs-product/IF12007

https://finance.yahoo.com/news/china-accelerate-dollarization-cutting-us-121715091.html

https://www.axios.com/2026/08/25/ai-debt-treasury-yields

https://www.cnbc.com/2026/08/24/bessent-1-trillion-treasury-general-account-bond-buybacks.html

https://www.washingtonexaminer.com/policy/finance-and-economy/4706189/scott-bessent-national-debt-growth-way-out/

https://fred.stlouisfed.org/series/A091RC1Q027SBEA

https://fiscaldata.treasury.gov/americas-finance-guide/federal-spending/

https://www.pgpf.org/article/the-federal-government-has-borrowed-trillions-but-who-owns-all-that-debt/

https://www.cnbc.com/2026/09/02/global-bond-yields-inflation-rates.html

https://www.crfb.org/blogs/debt-surpasses-size-economy

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This recent track record, in addition to massive new tax cuts and spending proposals has made it pretty clear that our government doesn’t really have any intention of paying this debt back or even really paying it down anymore…
To make matters worse, other governments and even major corporations are now trying to attract the same group of lenders creating a bidding war pushing interest rates across the world to multi-decade highs… At the same time debt is also at record highs… meaning all of these borrowers need to borrow more just to pay for… their borrowing…
It also raises the question of… if everybody is in record levels of debt… who is there actually left to lend us this money?
It’s not great, and it’s already causing some behaviors that could really only be described as desperate… like declaring Economic D Day, or using the military to fight… the bond markets… which isn’t really a thing…
So unfortunately we all need to sit down and talk about the bond markets… to find out what happens when those tricks stop working…

What If People Just... Stop Lending America Money?
Why A National Debt Default Now Looks Genuinely Possible... (sort of)
We've Tried Nothing... And We're All Out Of Ideas!
If America Will NEVER Pay Back Its Debt... Why Are People Still Lending Us Money?

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