Novus wrote:Hyperbole and twisted logic at its' best EnergyUnlimited. It actually works in the opposite in it the most basic sense. Defaulting on debt actually frees up resources for infrastructure because money going into interest payments is simply lost money. Instead up plowing tax money into unpayable debts the money is spent on real goods and services including infrastructure upkeep.
But after defaulting your money are not worth much, not even wanted.
After global general default a lot of manufacturers of countless goods across the globe will simply go unpaid.
It is not only banking sector who will end up annihilated.
So you will no longer be trusted, foreign contractors will demand payments in commodities, manufacturing countries like China will end up solicited by their own industry not to accept other forms of payment etc.
Local contractors on the other hand will no longer trust in value of currency even if they are forced by law to accept it.
Highly inflationary environment will result where any money you generate are quickly losing their value.
Ultimately you will need to resort to commodity (say PM) based currency even locally.
So countries devoid of plentiful commodities will find this situation unsustainable.
Again, I believe that this is the way for our civilization to go down the drain.
You will get your defaults, but as a result there will be no reason for advanced infrastructure typical for modern society to carry on existing.
Why?
Because it will no longer make a sense for anyone to contribute to its maintenance.