Re:The U.S. Yield Curve Has Inverted
by lisper on Monday December 03, 2018 @09:56PM
(#18595687)
Potentially.
One way to think of the U.S. national debt is as a measure of the future money supply. There are two ways to retire the debt: pay it off through increased productivity (i.e. GDP growth) or print dollars. Debt doesn't cause inflation directly, but it's a potential time bomb if the debt comes due and you can't pay it through productivity growth (or higher taxes).
Re:The U.S. Yield Curve Has Inverted
by afarrell on Tuesday December 04, 2018 @12:13AM
(#18596492)
Does it have to be future US productivity? Or because dollars are the global reserve currency, can it be future productivity of a nation that buys US treasuries?
One way to think of the U.S. national debt is as a measure of the future money supply. There are two ways to retire the debt: pay it off through increased productivity (i.e. GDP growth) or print dollars. Debt doesn't cause inflation directly, but it's a potential time bomb if the debt comes due and you can't pay it through productivity growth (or higher taxes).