The United States government’s national debt is going to be defaulted on. This is a simple fact that most politicians are either ignoring or simply spinning in their public statements about it. Whether they are stupid or malicious, only God can truly say, but the fact remains that the United States government is hopelessly in debt and the operators of it have no interest in decreasing it.
So with a default being inevitable I think it is high time that I take a stab at what debts are going to be defaulted on first. Here is a quick rundown of who owns the national debt:
As you can see, the U.S. government owns about two-thirds of the national debt. On top of that, the Federal Reserve owns 7%, making nearly half of the U.S. debt owned by the same assholes who are lending it. Talk about fraud.
Anyway, while I could get into the breakdown of which agencies own the most bonds (Social Security being the largest), I think that is irrelevant for the topic of this blog. I think it is a given that the United States government will not default on the debt it owes to itself.
So already, about 39% of the U.S. Debt will not be defaulted on until the very end. So here is my determined order at which the United States will default on its own debt:
- U.S. Public debt holdings will be defaulted on. All those treasury bonds will be declared to be worthless. While I originally thought that the default might occur with all countries that don’t have close trade ties with the US, I realized that this group will be first solely because it is the second largest and because the USGov doesn’t give a damn about its own citizens.
- All other countries who hold treasury bonds will be defaulted on. This is largely because there is very little incentive to maintain good diplomatic relations with many of them.
- After that, Japan will be defaulted on, largely because they are an ally, have the largest holding next to China, and because they are considered to be a backwards people by our racist overlords in both parties. They are also in their own state of fiscal insanity and it is bad to owe money to desperate people.
- The UK will be defaulted on next. At this point, however, the UK will probably see it coming and may sell their bonds to some dumb third-world nation that was a former colony.
- After this, China will be defaulted. At this point China will be in desperate economic situations as well with their massively empty cities either due to smog or poor central planning.
- OPEC will come next, provided that OPEC is still trading oil with us.
- Finally, the USGov will default on itself, more than likely starting with lessor (non-essential) agencies building up the Social Security administration.
At this point, the Federal Reserve will be spared the default since they have the most influence on Congress. And since most of the debt is gone, they will be the only ones to buy the bonds again.
That’s my breakdown. It’s just simple conjecture based on my own observations of what is going these days. Whether or not it is what will happen remains to be seen.