1. the government repudiates the debt and the bonds become worthless (FDR did that partially with repudiating the gold bonds by forcibly replacing them with dollar bonds, and pocketing the difference in value).
2. simply print money to pay them off (aka Yellen's trillion dollar coin)
Of course, there would be major consequences from these banana republic measures.
1. the government repudiates the debt and the bonds become worthless (FDR did that partially with repudiating the gold bonds by forcibly replacing them with dollar bonds, and pocketing the difference in value).
2. simply print money to pay them off (aka Yellen's trillion dollar coin)
Of course, there would be major consequences from these banana republic measures.
I don't invest in T-bills because of these risks.