If US debt-to-GDP is such a problem, why aren’t US Treasury rates surging and other fiat currencies surging relative to the dollar?

The US balance sheet is not a household or a business that can go bankrupt.

It’s a nation state with tax laws backed by guns. There are ways to decline, of course, but very different from people or companies.

I find this to be an elevated point, but also:

1. There are certain crises in which it could be more valuable for countries to call US debt than keep eating

2. There is a some (big) amount of dollars we can print that also makes call > eat

In summary: just bc US can get away with it now doesn’t mean we can later

building /bracket | hosting /greatbooks + /gray | ex-BCG, ex-PHD | poli + phil + econ

I’ll add to this that I’m embarrassed to force other responsible countries into this position without good reason — ie, for social vanity projects, inefficient provision of public goods, and unnecessary foreign entanglements