Saved by Kaustubh Sule
Spiralling Government Debt Isn’t a Choice
A country with well over 100% debt-to-GDP has two main choices in this scenario. The first choice is that they can keep interest rates very low despite periods of price inflation that occurs, and debase all of the currency holders and bond holders. Japan is far enough into fiscal dominance that they’ve chosen that route. The second choice is that
... See moreLyn Alden • September 2024 Newsletter: Why Nothing Stops This Fiscal Train
... See moreCongress can manipulate baselines, set fake expiration dates, and ignore their own budget rules—but they can't repeal the laws of economics or math. Deficits will continue to rise—from $1.8 trillion today to a projected $3.6 trillion in a decade. Another $25 trillion in 10-year borrowing will push interest rates higher and bury the budget under