Interest payments on the debt are now so large that the spending is higher than the outlays for the Departments of Defense, Commerce, Homeland Security, Education, the Environmental Protection Agency, the Small Business Administration, and the U.S. Coronavirus Refundable Credits scheme—combined.
This phenomena ruined so many African nations. A dictator comes in, defleeces the economy and disappears. Leaving the country open to leveraged loans, and world banks.
A real country with a real sovereign currency shouldn’t need to borrow to print it’s own currency. That’s only done so they don’t have to seek political agreements to appropriate the money.
Easier to have the executive order the treasury to take on more loans than ask the Democrats in Congress to authorize a spending and appropriations bill.
lets just say, borrowing is favourable for the usa. If they decide to just not pay, noone is gonna get the money back. Of course, then you have no one willing to borrow you money, then you can still start printing.
Say the us owes 1 Trillion us dollars. They print so much money inflation made that 1 Trillion equal to the value of one Apple. Boom, you can pay all your state debt with 1 apple. For convienence you introduce Trump Dollars afterwards with exchange rate 1:1Trillion.
I think non banana republic consensus is, states shouldnt borrow money to cover running costs but to cover investments. investments provide a ROI you can pay the debt back with.