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Just like the US debt is about to collapse on pepl and kill the economy, but ... ... it never happens.
by lofaszvanitt 2y ago
Just like the US debt is about to collapse on pepl and kill the economy, but ... ... it never happens.
- FredPret 2y agoPublic debt is more like a brake that gets worse and worse really slowly over time. And then it suddenly explodes - more and more of the budget goes to interest payments instead of procurement. At one point the government has to borrow to make payments on the debt, and then you’ve got a very bad spiral.
- pfdietz 2y agoBecause the debt is in US dollars, the government will inflate away the debt. So the end game is dollar devaluation, followed by enforced budget discipline because lenders will no longer accept treasury bills.
- topspin 2y agoThe US has had a long way to fall. In a wealthy economy can suffer a great deal of public finance abuse: there are many wells that need to be dried up. The progression of the US toward that goal includes, most recently: progressively shifting to ever shorter term notes to finance deficits and large scale monetizing of deficits, such as during the Great Recession and COVID. We'll get there. You'll know it's over when you get "bailed in" and the treasury starting minting trillion dollar coins.