Hacker News Reader

Hell of a gamble ...

Correct me if I’m wrong.

The current administration cuts the tax rate and borrows to make up for the shortfall in tax revenue.

All this is in hopes that the economy grows enough such that the reduce tax rate can support government spending and pay back the debt + interest.

If the economy goes south for whatever reason (e.g. China imploding, another bubble pops) ...

View on HN

What crisis would be so large that the US would be unable to keep up with it's repayments? Especially when you consider that it can borrow more to repay current debt instruments i.e. issue more Treasury bills, notes and bonds.

Plus other countries always need to borrow dollars because it's what oil is sold in, which is one of the things that makes US Government debt considered the baseline or "risk-free" investment, with any other investment having increased risk, and accordingly increased reward.

Reply on news.ycombinator.com