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Ah, the debt ceiling news cycle. Is this your first time?
by arduanika 2y ago
Ah, the debt ceiling news cycle. Is this your first time?
- mattnewton 2y agoI know how many times it’s been cried before, but I am worried this time there might actually be a wolf.
- wakawaka28 2y agoWhatever that wolf might be, it isn't going to be that the government can't produce more dollars to spend. It always authorizes itself to spend money and it always produces enough of that money to spend.
- seanw444 2y agoUntil it can't anymore. It will eventually fall apart. It is inevitable.
- schmidtleonard 2y agoGovernments going into too much debt is a very old problem that has happened hundreds of times before, even in the USA, so we know with high likelihood how it ends: inflation and soft default, not hard default. The timeline is the major unknown. https://www.imf.org/external/pubs/ft/wp/2015/wp1507.pdf https://www.imf.org/external/pubs/ft/wp/2015/wp1507.pdf
- wakawaka28 2y agoInflation is not exactly preferable to hard defaults, although it really depends on who is being defaulted on. Defaulting on pensioners would be pretty awful. Defaulting on foreign-owned bonds would be less awful.
- marcosdumay 2y agoWell, everything seems to be different nowadays. My guess is it's not that different. But I've been wrong every time I tried to predict the US on this leadership...