krion

Bloomberg ran a million simulations of the future path of the US government debt and concluded that in 88% of scenarios, America's debt-to-GDP ratio would rise over the next decade.

In general, of course, people usually think that we are talking about the risk of default on the US national debt. But there is no point in defaulting on debt securities in your own currency: you can always print more money to repay them.

The only problem is that this greatly accelerates inflation. Which is good for reducing debt (it stupidly depreciates), but generally harms the stability of the economy and investors’ faith in the States (which, again, pushes interest rates up). In short, the problem with the national debt can only be solved in a good way only by reducing budget expenditures.

And this is painful: who the hell needs to be kicked out of the “budget paradise” – the recipients of free medical care? Ukraine? Old people? Who would have the political balls strong enough to do this? There are certain doubts about Trumbaiden... American politics is on the verge of a complete deadlock.