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It's never impossible for the US to pay a dollar denominated debt, as they can always create more dollars to pay it. The real end point is when no one will buy
by nitwit005 1y ago
It's never impossible for the US to pay a dollar denominated debt, as they can always create more dollars to pay it.
The real end point is when no one will buy new debt, because it seems to risky. Either because the US has rapidly growing inflation from creating dollars to pay debts, or because a default seems likely.
- aeternum 1y agoYes, the Fed can always buy the debt so the end point is ultimately runaway inflation. A tale almost as old as money itself. Spending someone else's money is pretty fun, especially once you find a way to justify it as a moral good.
- bigfudge 1y agoBut this really isn’t about justifying spending as a moral good. The main changes which accelerate this debt are tax breaks for the wealthiest. Welfare spending and public investment are about a shared sense of public good. That’s really what the US lacks, compared to European countries which support much higher levels of public spending with (historically at least) very broad public support.
- aeternum 1y ago>Welfare spending and public investment are about a shared sense of public good >But this really isn’t about justifying spending as a moral good hmm
- brenttutut 1y ago[dead]