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Loans denominated in dollars, a currency they can print to payoff any debts as needed, save for its effects on inflation.

• rorykoehler 8y ago
  >save for its effects on inflation That's a fairly large caveat. Zimbabwe tried it and it didn't work out too well. The Weimar Republic also tried it to similar effect.
  • SubiculumCode 8y ago
    It may be a large caveat,but at least it doesn't try to frame national debt as the same kind of debt as households deal with when they take out a loan. It is fundamentally different. Debtors can't print money to pay off a loan. Also inflation does not just happen if you print money. The increased demand has to meet a lack of supply. Most historical cases of hyper inflation involved disruptions to supply capacity. America is not really in that position, and I suspect this is one of the reasons we see few signs of inflation these days in America.
  • rahoulb 8y ago
    They are not the best comparisons as there were other factors involved. Zimbabwe has destroyed its farming output, Weimar had its industrial region occupied by France. The US and EU have been running quantitative easing programmes for nearly 10 years and inflation is low. It’s not pure cause and effect.
    • rorykoehler 8y ago
      Yes I understand the situations are vastly different but that is not guaranteed in the future. The US is most definitely showing signs of decay and decline. Many more economically challenged leaders like Trump in charge and the situation could change beyond recognition. It only took one decision to destroy farming in Zimbabwe.