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What would happen if the U.S. State Department shuts down?
Yes, but It will require extraordinary measures. Firstly, Americaâs not quite âshut downâ ⊠think of this as an induced coma. The Majority of Americaâs economy is on life support, focused on conserving resources. As long as this keeps up, we can survive until we get about 75% virus penetration. Yes, that means that 75% of us will need to have had the virus without overwhelming our medical system. The key is that it is ok for some businesses to âdieâ. Airlines, for example, will almost certainly have to go bankrupt. Hotel chains may have to literally sell off assets to communities, states or the FedGov. Trying to keep all businesses alive to ensure that banks and creditors donât take a hit is only going to burden the government and choke the recovery. For America to survive well, creditors will have to gladly take a hit to preserve the core of their capital.
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So, I believe the question of debt forgiveness may be the most important for US Government to decide. America won't survive very long if we continue on what has already been an unsustainable path. As it is now, nearly 10 trillion (£7.6 trillion) of debt rests on the shoulders of individuals and businesses alike. Debt service payments would quickly bankrupt most Americans if they did not receive relief first. If the American people do not receive any substantial form of relief, it is a sure bet that they never will, unless drastic measures are undertaken. I can see no reason not to forgive or at least reduce. Let me explain. When a major disaster occurs, the American people look to the government for emergency relief. There is a sense that the government has our back. We put our faith in them, believing that they will do all they can.