dont care what team you are on. This is not sustainable. We cannot just keep taking on debt and printing money. It is not economically feasible.
We will have hyperinflation and currency will be worthless.
The rather interesting thing is that we have
not had inflation and long term bonds are still at historically low interest rates, here and in Europe too, where there are negative interest rates. Japan has had twice the debt to GDP ratio we have for ages without inflation. While it is certainly possible that at one point we could have serious inflation, there is every possibility that a collapse will produce unemployment and
deflation like during the Great Depression. Nor is a sudden economic “collapse” inevitable. A continuing slow grinding down of non-stock-holding workers is also possible, or stagflation similar to the ‘70s. Nobody knows.
Folks are right to be concerned about the declining
relative position of the U.S. in world economy — something absolutely inevitable — but wrong to panic or to assume this means our real standard of living
must decline. Capitalism, even crony state capitalism, is more resilient than people think, especially now that the Federal Reserve has abandoned it old shibboleths. We shouldn’t forget that scientific and technological revolutions are still opening new possibilities for greater universal abundance.
IMO, the greatest danger remains hysteria and political collapse — which can bring deep social crisis, or war with foreign economic or geo-political powers like China or Russia. Next is continuing domestic logjams that itself can cause collapse, shutting government, bankrupting states, etc. The ability of the Federal Reserve & Treasury to “create” money and its willingness to do so actually makes us stronger — if only this power is used correctly.
