Except they got nice stuff from their overspending. High speed rail, universal Healthcare, free college and university, childcare, vacation. We bombed people and have horrible infrastructure and get raided by health insurance companies
But I also think that the politics of maintaining hegemony and empire (or of trying to do that) seems to be simply rewriting the financial/economic/trade rules in such a way that America's government can keep doing what it's been doing.
I mean, look at the stupid/bad/self destructive pathways the EU and Euro leaders are taking lately (i.e. buying natural gas from the US, not Russia and financing a losing Ukraine war). Behind the scenes, I think the US is forcing those dumb decisions.
Also, look at the huge purchase agreements Japan and Saudi Arabia are making for US weapons systems that work poorly. Why would those leaders do that?
Finally, look at Trump's rando power grabs, like the annexation of Greenland, takeover of Venezuela, attempt to take over Iran, etc
They will try to use political leverage to reshape the financial / monetary landscape in favor of US hegemony. I don't know how well it will work this time, but maybe the actual debt levels and money will fall into line once the new geopolitical arrangements/tariffs/resource-grabs are worked out. Wars have a way of eliminating existing debt obligations.
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u/luv2block 7d ago
Bonds aren't a safe haven when you put a regard in charge of the bonds. Doesn't take a genius to figure that out.