Conjecture: For a little while longer, the U.S.A. can maintain its GDP levels through massive debt issuance, now at ~$850Billion per quarter. But this borrowing comes at the expense of other nations prosperity. Eventually the negative impacts outside the U.S. will take down the global financial system and blow back to the U.S.A. We see some indirect impacts already: mass migration into the U.S.A is partly the result of an artificially elevated U.S.A. GDP and lots of job openings here?
Or do I have it wrong? Maybe the U.S. has no choice now but to create more dollars (through debt issuance), to keep the established global financial system funded and delay a financial crisis and global recession / depression. At this point, it seems that even a modest reduction in U.S. government borrowing / spending would trigger a sharp downturn.
Conjecture: For a little while longer, the U.S.A. can maintain its GDP levels through massive debt issuance, now at ~$850Billion per quarter. But this borrowing comes at the expense of other nations prosperity. Eventually the negative impacts outside the U.S. will take down the global financial system and blow back to the U.S.A. We see some indirect impacts already: mass migration into the U.S.A is partly the result of an artificially elevated U.S.A. GDP and lots of job openings here?
Or do I have it wrong? Maybe the U.S. has no choice now but to create more dollars (through debt issuance), to keep the established global financial system funded and delay a financial crisis and global recession / depression. At this point, it seems that even a modest reduction in U.S. government borrowing / spending would trigger a sharp downturn.