"Every debt must be repaid to the last cent - either by the borrower or by the lender."
People who don't think ahead - which is most people - are going to get a hard lesson in economics pretty soon when the dollar crashes for real. Paper money always crashes in the end. Always....
It's called the "business cycle", but it should be called the "banking cycle". Banking is basically government sanctioned counterfeiting. Banks loan out, at interest, many times in excess of whatever money they have in their vaults. This slick trick makes fortunes for the financiers - but ultimately impoverishes everyone else as it inflates the economy beyond a sustainable paradigm. Eventually, inevitably, investors grow worried with their diminishing returns and slow or stop investing - and the banks stop lending.
When banks are failing they call in their notes. And these must be recalled at the same ratio at which they were loaned - about $10 to every $1 that they actually have, or had, in their vaults. This rapid contracture of the currency supply causes a depression. The assets of the little banks that go bankrupt are bought by the big banks. You'll get back only a fraction of what you had on deposit in a bankrupt bank - if that; but the new bankers can still foreclose on you if YOU can't repay. Even if you owe just one hundred dollars on your house or car they'll repo the entire house or car.
Or, the US could go into hyperinflation as the government attempts to escape its mountains of debt by printing up worthless paper. It's going to be one or the other....