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America Can't Go Bankrupt. Here's What Happens Instead
Commentary is circulating arguing that the United States, as the issuer of its own currency, cannot technically go bankrupt the way a household or company can. Instead, the real constraint is inflation: excessive government spending would show up as rising prices rather than an inability to pay debts. The claim is drawing large attention and debate about US fiscal policy, debt ceilings, and what actual limits on government borrowing look like.
Why now: Ongoing concern over US debt levels and deficits is driving interest in explanations of what fiscal crisis would actually look like.
United StatesUS federal debtFederal Reserve
Evidence
- America Can't Go Bankrupt. Here's What Happens Instead · OBF · 628.5K
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