The last time the USA restructured it's national debt was between WWI and WWII.
In 1933, (click here) the U.S. unilaterally restructured its debt by declaring that it would no longer honor the gold clause in Treasury securities. We study the effects of the abrogation of the gold clause on sovereign debt markets, the Treasury's ability to issue new debt, investors' willingness to hold Treasury bonds, and on the Treasury's borrowing costs. We find that the restructuring was followed by a flight to quality in the sovereign market. Despite this, there was little effect on the Treasury's ability to sell new debt or the willingness of investors to roll over restructured debt. The Treasury incurred a marginally higher cost of capital by issuing new bonds without the gold clause.
If the USA decides unilaterally to change it's US National Debt global partners may look to other currencies as more stable and change the status of the USA Dollar.
Fed Reserve Chair Powell (click here) & Treasury Secretary Mnuchin Testifies on $3T Coronavirus Relief Bill
Program ID: 472163-1
Category: Senate Committee
Format: Senate Committee
Location: Washington, District of Columbia, United States
Will Air: May 19, 2020 | 10:00am EDT | C-SPAN 1
Airing Details (click here)
May 19, 2020 | 10:00am EDT | C-SPAN 1
Social Security and Medicare Board of Trustees (click here)
Public Message
Each year the Trustees of the Social Security and Medicare (click here) trust funds report on the current and projected financial status of the two programs. The reports include extensive information about these
important social insurance programs and careful analysis of their
outlook. We believe they fully and fairly present the current and
projected financial condition of their respective programs, subject to the
following caveat.
The projections and analysis in these reports do not reflect the potential effects of the COVID-19 pandemic on the Social Security and Medicare programs. Given the uncertainty associated with these impacts, the Trustees believe that it is not possible to adjust their estimates accurately at this time....
