What's to stop Millennials from simply defaulting on the $20 trillion Boomer debt?

I know there's a law against the default but that law can be repealed.

Other urls found in this thread:

crfb.org/blogs/feds-effect-deficits-and-debt
federalreserve.gov/newsevents/pressreleases/other20170110a.htm
pgpf.org/budget-basics/budget-explainer-what-are-federal-trust-funds
twitter.com/AnonBabble

somethings up chico

>Refuse to pay taxes
>Go to jail

don't derail the thread with your off-topic schizophrenia.

>jail the government

what?

The fuck is defaulting?

I'm referring to the $20 trillion public debt of the US. I'm not referring to Soygoy McHipsteron's student loans.

Defaulting is saying to your creditor: i'm not paying the debt.

It's basically reasonable in this case because the boomers ran up the credit card bill of the US, then will hand the bill to the millennials when they die.

At that point, it is entirely reasonable for millennials to default on debt that they didn't make but was simply latched onto them.

I agree.

Especially since most of the debt is owed to boomers as part of their 401k's.
So essentially what they did was fund their pensions with future taxes.

You do understand the implications of what you are proposing right? It would be a disaster.

No, what are the implications?

>It would be a disaster.

For boomers and China.

For working Americans it will be a lot better than paying compound interest over it for the rest of their lives and generations to come.

sorry about your bad investment. you should've factored in the political risk.

Do you ever want to buy a house ever in your life?

Good luck unless you pay entirely in cash up front.

we're talking about public debt of the US, not private debt of individuals.

I say let it all come down.
We don't have much left to lose.

It would tank the economy and the countries credit rating. Who the fuck wants to do business with someone that defaults on its loans?

You mean those things that have outpaced inflation like crazy?

>Do you ever want to buy a house ever in your life?
>be a millenial
>buy a house ever in your life?

Hahhahahahahhahahahahhahahahahhahahahahhahahahahhahahahahhahahaha

or, smart investors would realize that the default was incredibly reasonable to do since it was unjustly latched onto them in the first place.

and to answer your question about who wants to do business with someone that defaults on loans:
most banks who deal with people who had prior bankruptcies due to fucked up life happenings, but then turn their life around. that's analogous to the millennials declaring bankruptcy due to fucked up boomer debt, then starting fresh, having learned from the experience, and making smart investments from then on without the burden of debt owed to other creditors.

plenty of banks and countries would loan money to that fresh start country.

Do that and Israel will kick your ass. You owe them they own you.

So you want to default on the national debt and "wipe the slate clean" and you believe everything will be just fine? You can't argue with this many extra chromosomes.

>No, what are the implications?

The US government will have a hard time borrowing for a while.
But then without having to pay interest on debt it shouldn't have to borrow.

The US dollar will likely lose a lot of value.
Which is a problem if you have a lot of savings, but it;s fantastic if you have a lot of debt.

The economy will likely also take a hit.
This is what everyone will scaremonger about.
But it's just temporary (I'd say 5-10 years max) vs. having to pay interest and debt repayments all your life.

>I have no arguments so I will just call you retarded.

every fucking time.

Well, you can, the problem is at that point US debt becomes a toxic asset.

>So what?
In the immediate, no one would fucking loan the government money, and the government would need to institute stringent austerity measures to keep itself running; we easily overspend our revenues.

>So what?
The bigger problem is that US debt is used as the lynch pin of the entire economic system. Trillions of dollars are invested in US treasury bonds of various types, and this debt-money would simply go to money heaven and cause laughable economic chaos.

Something worse than october 29, 1929 will happen. So worse that people will no longer show up to their jobs and just start killing people

This is why they are taking your guns away

the 17 people killed was just the catalyst.

My argument is that it is fucking retarded.

Boomers around the world will hate America for defaulting on their obligations. However, I can see that defaulting the debt is fair as it's the unborn who have to unjustly carry this burden.

It could be a generational default programme, something similiar to Jews when they're allowed to not honour their loans taken with other Jews, on a particular day.

No, they just have no stick to wave around. Thier biggest hope is when iran and russia come to purge them, that the usa will have thier backs long enough to bring nukes to bare. They literally have them pointed at europe as insurance

This is why the russians bragged about stealth/speed nukes negating defense shields

>disaster

worst case scenario it would plunge the nation into externally inflicted isolation. shipments from shitholes would cease, leading to a mad dash to hoard intraborder junk while domestic sources scramble to fill the gap.

however, most of our debt is internally owed and consists of future (((obligations))) that can be abolished by enforcing the original mandates of the obligating entity instead of kicking the can down the road

the key takeaway, however, is that it's a game of musical chairs and the music WILL eventually stop. someone will be left out- so we must ensure that we choose who it is instead of having it happen unexpectedly

>we easily overspend our revenues.

If you can't even balance your budget when not having to pay any interest then you have bigger problems.

>its da bommers fault

why do you stupid idiots always think its old fucks faults, boomers didnt start oil wars, boomers didnt start bad trade, boomers didnt start the cold war, its the fucking zionists not the old fucks who are on social security.

you mean just like my grandfather did? and his father?

>the Jews will just relinquish control

Sure

>your bad investment
Misattribution

It's the boomers who didn't pay enough taxes to pay for the government spending they received.

In short what happened:
- US government payed for the education
- When they started making serious money they voted for lower taxes.
- Lacking tax income, US government had to borrow money.
- US government borrowed from boomers who had more than enough money since they payed hardly any taxes
- US government now owed boomers shitloads of money plus shitloads more interest
- Millennials will have to pay for all that.

Not only that but retirement funds skim a percentage of the principal and then keep skimming a few percent of price gains.

401ks are a scam unless you really really can't manage to hold onto a single dollar for savings.

Your father and grandfather didn't have house flippers buying the house raising the price by 10% and reselling it every few months.

Why were the Jews expelled so many times from different countries etc.? Mostly because it was a way to ZERO THE DEBT. Kikes practiced usury, the debts got too great, people/the king etc. kicked them out. This was a common practice. 'National debt' is a meme.

>all white people keep dropping out of society
>being bred out of existence
>brown population keeps exploding
>gibsmedats demands increase as income decrease
>boomers die
>???
>race war

>federal reserve prints money
>federal reserve loans this money to the federal government
>federal government now has debt and pays back the money that was printed to the federal reserve with interest
>federal reserve receives interest payments and sends it to the government, but keeps a little bit for itself

crfb.org/blogs/feds-effect-deficits-and-debt

>By law, the Federal Reserve returns its excess profits to the U.S. Treasury. In Fiscal Year (FY) 2016, the Federal Reserve remitted $116 billion to the Treasury, $19.3 billion of which was from the Fed having to draw down its capital account – a budget gimmick employed by the FAST Act. Remittances more than doubled between 2009 and 2010 as the Federal Reserve expanded its balance sheet.

>Much of this profit was "earned" from the interest on holding U.S. Treasuries. Thus, the U.S. government is sending interest payments to the Federal Reserve, and the Federal Reserve sends the money back to the general fund as profits. This is a mostly temporary phenomenon lowering the short-term budget deficit. When the Federal Reserve starts unwinding quantitative easing by allowing a gradual decay of its holdings, its profits will decline.

federalreserve.gov/newsevents/pressreleases/other20170110a.htm

>Statutory dividends paid to member banks totaled $711.5 million in 2016. No income was transferred to surplus due to the $10 billion aggregate surplus limitation as required by the Federal Reserve Act.

Now knowing all this, do you understand why an audit of the federal reserve has never been done?

I thought the 20T debt represented the 20T debt to the federal reserve (a seperate entity from the US Gov.) for all currency in circulation. I thought the debt was literally just how much money is in circulation since it is all owned by the Federal Reserve and guaranteed by the US Gov. Not paying it back would simply mean the US is no longer backing the US Dollar owned and managed by the Federal Reserve making the US dollar worthless.

We subsidy a massive portion of defense spending, of European countries, which allows Europe to use its budget on other things.

Look at Poland if you want to see what would happen if we stopped paying for NATO and advanced weapon systems.

Of course our flaw is that everyone involved in military procurement is corrupt asshole.

A fictional story: Once upon a time, the US Navy thought it would be a good idea to make a modular submarine. Dropping off seals? Put the appropriate module in. Need to wave dick misses at Iraq? Put the appropriate module in. Now these modules are connected to the submarine by very large screws.

So these, completely fictional, Virginia class submarines seem to allow flexibility
Wouldn't you know... after a few years, the screws started scraping and banging in their enclosures. This is really bad because it's like screaming "rape me" in the dark of Detroit. In order to fix the problem., they have to throw another billion or two. Per Virginia class submarine.

PS: Never, ever ever, join submarines in the US Navy. Unless you like doing 5x the work of a normal sailor with 10x the stress.

But where to cut?

>Boomers around the world
MFW it's a global caste system based on age.

More than half of the Federal Government Debt is to itself.
About 1/3 is to foreigners
The rest is private individuals buying federal bonds.

Now how can the government be indebted to itself?

pgpf.org/budget-basics/budget-explainer-what-are-federal-trust-funds

>How do federal trust funds work?

>The federal government uses trust fund accounting to link receipts designated by law for a specific purpose with the expenditure of those receipts. Those receipts can include receipts from the public (taxes, premiums from program beneficiaries and other fees), as well as intragovernmental transfers from other federal accounts, including Treasury interest payments. Those expenditures can include direct payments to individual beneficiaries (e.g., Social Security benefits), grants to state and local governments (e.g., highway and mass transit grants) and intragovernmental payments (e.g. Treasury interest payments on trust fund balances, which are debits to one government account and credits to another, not net new income).

Take a look at the chart.
Look at each wedge representing a trust fund for our many welfare programs.

>The Social Security and Medicare Board of Trustees point out that its programs have an immediate impact on the federal budget, even though the actual depletion date of the trust funds is further in the future. Because Social Security and Medicare costs currently exceed their dedicated tax receipts and premium income, the programs are using interest earnings, general revenue transfers, and redemptions of the funds’ Treasury securities to cover their shortfalls.

25-year-old here. Looking forward to it!

Boomer here. I just have one thing I'd like to say to you young folks. Please, please get on the payrolls and make a contribution to society, and also pay into social security. It is a contract between generations and each generation owes it to the one that came before them. We did our part, and now most of us boomers are ready to retire. So please keep the contract alive and get on those payrolls and earn an honest living. You'll feel good about and remember that hard work is it's own reward.