Does the U.S. have an endless line of borrowing credit, or does anyone know the cap before the repo man comes?

Question

Does the U.S. have an endless line of borrowing credit, or does anyone know the cap before the repo man comes?

Answer 1

Yes it's an endless line of credit, because the gov can print money until it's worthless.

Inflation is an invisible tax on rich and poor.

Answer 2

We've never defaulted on a debt.  We've lent money to countries that defaulted on their debts to us, and we forgive them.  The countries we currently owe money to benefit more by keeping us alive and strong than forcing us to repay.  China stands to make more money through commerce with us than it will if we repay our debt to them.

Answer 3

first off its not credit its called TREASURY BONDS.  and treasury bonds cant be CALLED IN because they have a maturation date.  If they are turned over before they are matured they dont receive the interest.  and they will not all mature at any given time.  So please if you are going to try to make points atleast learn alittle about what your talking about.

Portions of the national debt are maturing all the time—and the US Treasury is paying it back all the time.  The process is called debt rollover; it’s a financial practice that is legal, sound, and commonplace.  Individuals do it, small businesses do it, corporations do it, state and city governments do it.  Should it be a big surprise that the federal government does it, too?  

I for one don’t think it should be—  If you understood debt rollover, youd understand that if our economy continues growing at a sufficient pace, our grandkids will never have to pay it back.  Never.  Nor will our grandkids’ grandkids, either.  (Feel free to extend that out as many generations as you want, by the way.)

Anybody who asserts that our children and grandchildren will have to “pay back” the debt has an obligation to explain why (and when) debt rollover will become impossible for those future generations.  I confidently predict that you will ignore the question—because either (a) you don’t understand it, or (b) you do understand it, but think we’re too dumb to get it.  However, in the happy event that I am wrong about that, I promise I will be listening intently to your explanation.

Answer 4

So let them call in the debt, and get 10 cents on the dollar.  Don't see how that helps any government or we would have called in our debts long ago.

Answer 5

No, I think that's were inflation comes in, and worse hyper inflation. The more we spend, the weaker our dollar gets...

Answer 6

The line is large but finite.  You will know that the limit is being pushed when interest rates on Treasury bills go much above 6%.

Answer 7

Yes the US does have an endless line of credit.  Do you realize how much money the US has loaned and given to these other countries in the past 60 or so years?  The rest of the world is indebted to us many many times over.