10 sats \ 3 replies \ @faithandcredit 11 May 2023 \ parent \ on: Daily discussion thread
I am no expert but as far as i understand US government defaulting put simply means it has to cut spending 30-40% and pissing a lot of people off and the US government cutting this amount of spending, due to its size, it will have a relatively big impact on the economy short term.
This little debt limit drama is ridiculous. They'll do another "partial shutdown" like they always do, by laying off government workers whose jobs are meaningless. No one notices, despite the media claiming that it's a disaster. It ends when the debt ceiling is raised, and all those employees are given back pay at time and a half.
Then the cycle starts again.
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when inflation and interest rate was low it was easy for congress to vote to print money and go into more debt. but things are a little different now. but lets see.
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True. I really don't see how the US can stop printing, even if Powell is serious about the probably futile attempt to get inflation down to 2%. The US is the world's biggest debtor. The debt increases every day. They have to inflate away future debt or actually attempt some type of reset.
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