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misiti378002/20/20253 repliesview on HN

We are 35 trillion dollars in debt - we are broke. We have go cut costs if we want to avoid catastrophe in the medium term.


Replies

pjmorris02/20/2025

Government debt is a result of government spending into the real economy. It is where we get the taxpayer dollars that we spend, some of which go back to the government itself. A government without debt is also an economy without money.

Governments with central banks can mismanage their currency, but they can't run out of it.

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dontparticipate02/20/2025

There's a body of government explicitly built to do exactly that and given exactly that power in the constitution. It's called Congress.

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2OEH8eoCRo002/20/2025

If we are broke then why do people buy our debt? It's obviously more complex than you make it sound.

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