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The thing people who harp on debt miss is that it's a zero-sum game, not an absolute competition. Yes, the US has debt, but if the market believes it's stronge
by ethbro 11y ago
The thing people who harp on debt miss is that it's a zero-sum game, not an absolute competition.
Yes, the US has debt, but if the market believes it's stronger than any of the alternatives... the US dollar still holds value.
- dools 11y agoThe US only has "debt" in USD and pays interest in USD which it creates. It deosn't even really have "debt" in the sense that it hasn't "borrowed" to fund any spending. The bond market just allows USD account holders at the fed to earn interest on reserves and is used as a tool to target the overnight interest rate. Nothing more.