- The U.S. owes $38 trillion – and can print every dollar of it.
- When you can create the money you owe, does debt even exist?
- The real risk isn’t default – it’s what those dollars will be worth.
- If trust in the dollar slips, inflation hits and markets tumble.
The U.S. national debt has surged past $38 trillion – roughly 125% of GDP. Analysts have warned of an impending debt crisis. Still, the United States has never defaulted on its obligations in its own currency. So, what exactly is this “debt” that everyone worries about?
Image by benscripps from Pixabay
If a company, for example, issues debt using a paper it can print itself – as much as it wants – what would you call that? Well, companies do it right now. They issue stock certificates, and it’s called equity. So maybe U.S. federal debt isn’t really “debt” at all. Maybe it’s equity in the United States. The U.S. Treasury can print as many…
