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Hotshot Wharton professor sees $34 trillion debt triggering 2025 meltdown as mortgage rates spike above 7%: 'It could derail the next administration' (fortune.com)

submitted 7 months ago by yogthos@lemmy.ml to c/usa@lemmy.ml

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[–] davel@lemmy.ml 4 points 7 months ago* (last edited 7 months ago) (1 children)

Hey hotshot prof, read Greenspan’s lips: The United States can pay any debt it has because we can always print money to do that.

[–] lemmyseizethemeans@lemmygrad.ml 1 points 7 months ago (1 children)

Yeah there are people in modern monitory theory who agree completely, saying deficits don't exist if you can print more money at the money factory. To a certain extent I agree, but it requires currency supremacy. Thanks to Ukraine sanctions and swift shutoffs however the world is de-dollarizing which will weaken the US's ability to always just print more and demand foreign debt be held in dollars.

[–] davel@lemmy.ml 2 points 7 months ago

Yup, things are changing pretty quickly. The US’s ability to expropriate through neocolonialism is slipping as well, and our capitalist class still has little interest/incentive to rebuild the indigenous industrial capacity that they offshored decades ago.