alt Hacker NewsWhat were some specific problems caused by this spending? Seemed to work quite well.
Up until our international image was destroyed two months ago, we were in a privileged position allowing deficit spending while the rest of the world absorbed the negatives.
Trump certainly doesn't have a solution, but I'm also not convinced he has correctly identified a problem. Nation-state debt from the country whose currency is the de-facto international standard for the world, is categorically different than your mortgage or your credit card debt.
It's clearly unsustainable. Eventually it leads to a run on the dollar and inability to refinance the debt. At that point, the debt gets inflated away.
I ask you: do you imagine it can continue forever, with debt reaching arbitrarily high multiples of GDP?