At what point do investors lose confidence that the US govt will be able to make these bond payments in 10 years? Whatever was considered 'business as usual' through decades of republican/democratic presidents is chucked to the bin now.
of course, losing confidence that the dollar denominated payments will be worth anything near what you expect in non-dollars is functionally very similar to losing confidence that they'll pay
Comments
At what point do investors lose confidence that the US govt will be able to make these bond payments in 10 years? Whatever was considered 'business as usual' through decades of republican/democratic presidents is chucked to the bin now.
The US can always pay their dollar-denominated debt by printing more dollars. It wouldn’t be a case of being unable but of being unwilling to pay.
of course, losing confidence that the dollar denominated payments will be worth anything near what you expect in non-dollars is functionally very similar to losing confidence that they'll pay