- We're borrowing money, and we'll need to pay it back. That's scary.
- Money is bits in a computer, and from the perspective of the US government, it's like video game currency. Debts and deficits are fiscal instruments.
Which of these is correct, or something else, is TBD. I think a big part of the question is who holds the debt. I'm a lot more worried about foreign debt, and I'm a lot less worried about debt as a financial instrument to pay interest on de facto savings accounts.
- We're borrowing money, and we'll need to pay it back. That's scary.
- Money is bits in a computer, and from the perspective of the US government, it's like video game currency. Debts and deficits are fiscal instruments.
Which of these is correct, or something else, is TBD. I think a big part of the question is who holds the debt. I'm a lot more worried about foreign debt, and I'm a lot less worried about debt as a financial instrument to pay interest on de facto savings accounts.