I don’t see congress doing the responsible thing and dealing with the debt. Not to mention, there isn’t as much that can be cut from discretionary spending as you would think. Any meaningful cuts decimate everything outside of defense.
We’re not (in my option) going back to zero interest rates, so interest will make balanced budgets impossible to achieve.
Also don’t see much appetite to cut defense as we’re aligning to have China and Russia as enemies.
Rather I think we’ll resort to more of the Fed buying up the debt who can remit the interest payments back to the treasury.
I could see a scenario where they even just retire/redeem treasuries so the debt just goes away. The downside it’s inflationary but also does this erode confidence in the system where things are (even more so) centrally controlled.
We’re not (in my option) going back to zero interest rates, so interest will make balanced budgets impossible to achieve.
Also don’t see much appetite to cut defense as we’re aligning to have China and Russia as enemies.
Rather I think we’ll resort to more of the Fed buying up the debt who can remit the interest payments back to the treasury.
I could see a scenario where they even just retire/redeem treasuries so the debt just goes away. The downside it’s inflationary but also does this erode confidence in the system where things are (even more so) centrally controlled.