>The country is at risk of a debt spiral.
The US owes US dollars and can also issue US dollars. There are complications but it's not like you run up a credit card and can't pay.
The US owes US dollars and can also issue US dollars. There are complications but it's not like you run up a credit card and can't pay.
The bad news is that they're all terrible.
We now do not appear to even be playing for time and are rushing toward the "all at once" thing.
Inflation can also happen when production goes down, not just when money supply goes up.
Now I don't claim to be an expert at economics, I'm just a software nerd like most here and may be wrong so take with a pinch of salt, but the things I've heard that are associated with stagflation include de-globalisation and supply chain shocks (e.g. a trade war with major partners), tariffs, and shrinking labor force (aging population not helped by a combination of low immigration and aggressive deportation).
I say it in jest, but I can't spot the problem with it because I'm not an economist.
- imports will become prohibitively expensive
- doing everything locally is less efficient
- the dollar will lose its world currency status
- then debt will become unsustainable