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Comment by thiago_fm | Hacker News Reader

Good luck for the fellow Americans that will pay up that 120%+ GDP/debt ratio, with 7% deficits and no spending cuts in sight.

The rich in the US are taking advantage of it, by making the US pay for all welfare while they barely pay any taxes.

If you are an American young professional which needs to work in order to survive, you are being ripped off everyday by just existing.

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If you inflate the currency, GDP goes up, and nominal debt stays the same. That’s the government’s current playbook, with its massive fiscal deficits.

That only works if rates don’t go up which is probably not a good premise to rely on

If you are in a balanced budget or continued deficit situation, then, yes, increased rates will eventually be a factor (but that's a lagging effect, even then) if you have a sufficient surplus that with the effect of inflation increasing its nominal size with the same real revenue and spending you can pay down debt at least as fast as it comes due, so you aren't going back to do new net borrowing, increase cost of borrowing doesn't matter much.

The only thing missing is replacing the head of the federal reserve bank with a mindless puppet so they stop standing in the way of success (inflation).

This works if all the debt is long term debt (>=10Y), which surely Jellen and Bessent have been selling, right?

Have you considered that maybe lenders might be aware and are therefore not very willing to give long term debt to the USA?

We're already at the point where participating doesn't make sense for a lot of workers, that's why tax increases (which must happen if we don't aggressively cut spending and even with the minor cuts we've had there's been incredible wailing) are coming from tariffs instead.

It's very unlikely the federal governments future obligations will be met in real dollars. I've said before "at the end of the day all retirement plans are effectively market driven." I wouldn't want to be depending on social security right now.

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