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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I can’t see how the USA can run a trillion dollar deficit forever. How does this get addressed? I don’t like that DOGE targeted certain agencies but how can we continue spending more than we have by $1.7 trillion dollars a year?

Is that sustainable? What resources can I use to educate myself on this? Cutting spending is never popular and obviously Trump will offset any savings with tax cuts but I’m not understanding why the deficit isn’t a big deal to us Americans. [/quote]

The government creates the money. Debt is paid via a mix of taxes and inflation (implicit tax on purchases).  Rarely it is cancelled via default, effectively a tax on bondholders.

Everything is fine until one day it isn't and the merry go round stops.  Look to 1929 and 2008 for examples. [/quote]

The debt spiral happens when we have to take out debt to pay the interest on our debt, EG print money.  Eventually the dollar inflates, and people stop using it.  This is where it bites to be an international reserve currency, because then people start dumping the dollar and using other currencies.  We may already see those effects when the dollars in overseas reserves start coming home.  "The cows coming home issue."  Where we have little control over the money supply.  This is why we'll probably see persistent inflation into the future as long as we continue to ratchet up debt.  Something will probably break before the debt spiral happens, but there is a definite limit.[/quote]

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