Interest is paid on the deficit, and once the interest gets large enough, there's a runaway doom loop.
It depends on who is spending. If American consumers or the American government borrow to consume, what you say is right.
But it was US monetary policy for decades now that the deficit doesn't really matter, because the world trusts the US and loans the money back.
alt Hacker News
It depends on who is spending. If American consumers or the American government borrow to consume, what you say is right.
But it was US monetary policy for decades now that the deficit doesn't really matter, because the world trusts the US and loans the money back.