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> but indebtedness and the future having to pay up for the spending of the past Who do you expect will hold the US into its indebtedness? The entire world is
by marcosdumay 1y ago
> but indebtedness and the future having to pay up for the spending of the past
Who do you expect will hold the US into its indebtedness?
The entire world is powerless to stop Argentina, why do you think the US will be more impacted?
- s1artibartfast 1y agoNobody can stop the US, they just stop lending under favorable terms, like Argentina. Nobody wants to make loans to Argentina (or within Argentina) payable in the Argentine Peso. This is the punishment. The punishment of being credit unworthy is an inability to use credit markets. This means businesses struggle and the government has its hands tied in dealing with economic crises. Argentina can't use economic stimulus to correct economic recessions. There is no deep demand for the Argentine peso, so stimulus leads to more inflation rather than increased economic activity