Dreaxia
2 min readJul 6, 2023

Thank you for sharing another viewpoint on the matter. While it is true that money is not a scarce resource for the US government, it is important for the government to act as if it were. If the government continues to spend money without implementing proper fiscal and monetary policies, it can lead to potential risks and repercussions. Investors who hold US debt, such as Treasury bonds, may start to lose faith and demand higher interest rates as compensation for holding what they perceive as a risky asset. This scenario could result in the US paying a significant portion, if not all, of its earnings through tax payments as interest to debt holders, leaving limited funds for reinvestment into the economy's infrastructure and other essential areas.

While one potential solution could be printing more money and injecting liquidity into the economy for growth, this can become a cycle where investors demand even higher interest rates to continue purchasing the debt. However, this approach is not sustainable in the long run. Eventually, there may come a time when the US government is unable to meet its interest rate obligations, or investors completely lose faith in the economy. The consequences of such a scenario can be severe and may include economic instability, high inflation, reduced investor confidence, and a decline in overall living standards.

In conclusion, I believe efficiently utilising and developing real resources and capabilities is indeed crucial for long-term prosperity, and yes, it can all be done by government financing through printing more money, but this will only devalue the currency and hurt the economy in the long run. Therefore, it is important to ensure that the allocation of resources is done in a sustainable manner, considering the availability of funds and the potential impact on inflation, interest rates, and overall investor confidence in the US economy.

Dreaxia
Dreaxia

Written by Dreaxia

Passion for engineering, freelancing, and trading. To build, to lead and to leave a legacy

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