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The US has massive unpayable debts. It has to produce price inflation. At the same time, it has to keep interest rates low to defraud pensioners with the ERISA law. This, in turn, requires limited lending and high unemployment to avoid a hyperinflationary run on the currency and this would cripple the US and UK if it were held for the decades that is required to cover the Baby Boomers. So stagflation with low interest rates, except the level of debt means a Volcker hike of overnight rates to 21% is not possible.|
A further complication is the transition away from the USD as a reserve currency, as happened with Sterling in the 1950~70s. Then as now, various currency swaps are being used to stabilise exchange rates and instead of a guarantee of 90% of reserves in USD as the UK had to do back then, Japan (and probably China) has agreed not to dump. Sterling fell from 87% in 1947 (IMF estimate) of reserves to 3% today. Then as now, China now represents a far larger economy than the US, GDP statistics being "man made". China accounts for most of the World's copper, steel, grains etc. consumption, whilst the US has the worst deficits in all of history despite the highest nominal GD "product".
Options to default on the liabilities include:
a shorter bout of inflation is required or even a deliberate hyperinflation with much lower standard of living because the devaluation makes everything a luxury,
kill off the Baby Boomers,
parasite off the rest of the World,
steal the cash,
all of the above.
Hyperinflation could be a one-off revaluation then pegging to gold as FDR did in 1934. Inflation will be the main way that the US (and UK) defaults.
Killing off Baby Boomers could be via pandemic, war or simply sending Amerikans to the UK's National Health Service where the "Liverpool Care Pathway" simply starves victims to death and the "Do not resuscitate" policy also lets elderly victims die. A spate of flu-like pandemics suggests that the Great Satan has been developing these diseases and is trialling them on the RotW as they did to France a while back. These psychopaths are genocidal not suicidal.
Exports are limited because of the krudware produced. Only the natural produce from the land thieved from the native American such as gas and crude oil will sell. Agricultural produce is tainted by the GM krud, which is also probably a scam to make the RotW dependent on the Great Satan for food supplies when the GM krud contaminates and/or wipes out your natural crops.
The Great Satan will also try to continue the parasitic system of tribute via fiat currency as long as it can.
Wholesale thieving from the sheeple is already under way.
Outright default will have to occur too as happened in 1933 when gold clauses were universally repudiated and gold confiscated and in 1971 when, again, gold was defaulted on "temporarily".