I see claims that we’re already getting close, going by USAID alone
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We’ve always told ourselves this, which is why it’s a problem
Think of it more like a home equity loan. We’re living beyond our means so taking a loan out in the value of our house to pay for it. As we want more stuff, we just take out more of the home equity loan to pay for it. I have $10 but want to buy eggs, so I spend an additional $2 from the home equity loan
We live in the biggest house on the street so people are claiming we can live way beyond our means, unlimited. But there’s always a limit.
But the limit is whenever the bank says it’s too much and we don’t know ahead of time what that is
Is that too much? Not yet, but it’s stupid to keep pushing the limit just to make a few billionaires richer
… and we benefit from being the worlds reserve currency, or we used to. It would be really stupid for a government to mess with that by being isolationist, blanket tariffs and other trade barriers ——- back to the analogy is that our home value is propped up by fantastic landscaping. But we’re letting it goto seed and parking some rusted out cars in the yard, while still claiming we have the best yard in town