4 ms·
Until it can't anymore. It will eventually fall apart. It is inevitable.
by seanw444 2y ago
Until 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.