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» The country is at risk of a debt spiral. This is impossible by definition: The U.S. dollar is the world's dominant reserve currency.

• svachalek 2y ago
  And as history shows, printing money is a super fantastic way to get out of debt spirals. [Narrator voice: No, it's not.]
  • DrNosferatu 2y ago
    The "printing money" quip misunderstands how modern monetary systems operate. The Fed doesn't just "print money" - it has only two real tools: buying and selling assets, and raising/lowering interest rates.
  • DrNosferatu 2y ago
    Instead of throwing around historically illiterate analogies, let's talk about the real issues: What are the actual inflationary risks right now given the state of the economy? What are the costs of not spending (i.e., austerity)? Because history also shows – very clearly – that austerity imposed due to debt panic in countries that could have afforded to spend is often way more damaging than the debt itself.