Largely agree on your post, but one nit:
> If the US couldn't find buyers to finance its spending, it would default on its debt.
Why would the US have to default on its debt, when the debt is denominated in a currency that the US can freely print?
> If the US couldn't find buyers to finance its spending, it would default on its debt.
Why would the US have to default on its debt, when the debt is denominated in a currency that the US can freely print?
Whether prices get higher (government bidding up prices following monetary inflation) or taxes increase, the effect is the same: the good/service production in question will get modified relative to other parts of the economy.
Inflation is just a tax increase on "everything but" what the government is buying.
Is this some sort of hot take where you try to classify government spending as monetary inflation?
I don't know what the point of this reply was otherwise. It's still very misleading to imply some money printing has the same scale of ramifications as a default.
Hyperinflation isn't numbers like 10% annual inflation, which are extreme events in functioning economies. Some definitions put it at more like 10,000%. That's not caused by central bank manipulation. That's caused by a complete collapse of the economy. The central bank can try to deal with that by printing almost-valueless currency as an IOU, but that's the result, not the cause.
That's often caused by war, though it's sometimes caused by massive mismanagement of resources. It's not really relevant to the kinds of situations being discussed in the article, which are functioning economies (as long as they can keep from going to war on each other).
Also
> won't cause inflation
won't cause HYPERinflation
That's not the claim. Government bonds are like 30 years, so it's not 127% of the GDP all at once. Second, the context was not all debt everywhere, it was Chinese held debt, which is at about 5% of GDP, without spreading it across the duration of the bonds.
> you still haven't posted evidence from an authoritative source.
https://www.theonion.com/fed-raises-interest-rates-in-effort...
Source: Argentina.