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Uncle Sam Can’t Go Broke, But Can He Stub His Toe?
What You Need to Know About U.S. Debt, Default, and Why Your Wallet Cares.
Alright, let’s talk about something that sounds scarier than a computer virus from a 1990s email: the U.S. “going bankrupt.” My wife asked me about this the other day, and it got me thinking.
As someone who’s been around the block a few times — from the military to running my own tech business — I’ve learned that complex problems usually have simpler explanations once you strip away the jargon.
And trust me, when it comes to government finances, there’s a lot of jargon.
So, I told her, “Honey, countries don’t really ‘go bankrupt’ like a corner store that can’t pay its bills.” But could something else happen? Like, could the U.S. miss a payment on its debts?
That’s a different story, and it’s worth understanding.
First things first: “Bankrupt” vs. “Default” — What’s the Diff?
Imagine your neighbor, Bob, has a small business, “Bob’s Amazing Widgets.” If Bob can’t pay his suppliers or his rent, he might have to declare bankruptcy.
That means a court gets involved, assets might be sold off, and Bob’s Amazing Widgets could…
