$38 Trillion U.S. Debt Paradox

• 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.

U.S. debt just crossed $38 trillion, almost 125% of GDP. Economists warn of a crisis, yet America has never defaulted in its own currency. Is this really a ticking time bomb, or a misunderstood feature of modern finance?

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 the 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 dollars as it wants to repay the federal debt. There isn’t a scenario in which…