For most in the mainstream of economics and the political establishment the idea of the U.S. government defaulting on its obligations is simply unthinkable. No one will admit that default is likely, much less actually entertain the idea as a viable solution to the debt crisis.
Well Doug Casey, author of the new book Totally Incorrect, says otherwise. In the below interview with Reason.tv he makes the moral case that the national debt should indeed be liquidated – that the U.S. government should simply not pay back its creditors. He makes the case on moral grounds coming generations should not be forced to pay the debt. And in fact the people who lent the government the money should be punished for enabling it to grow out of control.
Also discussed is why living abroad can be beneficial for both your finances and freedom.
Ultimately the U.S. will have no choice but to default on its debt. The logical fallout will be that no one will ever trust us again and why should they. I forsee another civil war brewing in the U.S. However, this time the Union Federalists won’t be able to pay their own troops and thus will not be victorious. The U.S. will then split apart into several different sovereign nations based upon regional economic comparative advantages and geo political commonalities. For example, I could see Montana, Wyoming, North Dakota, South Dakota, Nebraska, Kansas, Oklahoma and Texas becoming its own sovereign nation. Only time will tell.