>>512700787 (OP)the future:
>Fed inevitably cuts rates>M2 supply continues going up>inflation returns>debt only goes up (it can't go down at this point)>nations continue to dump USTsfor those not in the know, the US and many other nations have a debt problem. debt itself is not bad - there is non-productive debt and productive debt. an increase in the former is bad (the US is here) and an increase in the latter is good.
why is it bad? it is debt that isn't used for any long-term gains. non-productive debt is basically funding Social Security, Medicare, and other government programs, in order to support an aging population. this has always been a thing but has, for the past decade or so, been gaining a larger and larger share of the debt.
this limits what productive debt we can take on that would build projects and fund companies that would ultimately pay for the debt that they take on.
now, they can't just outright cut these government programs because so many depend on them. that would be economic and political suicide. hundreds of thousands of people would likely die and they obviously can't allow that. so what do we do? we continue inflating away the debt. obviously, this is problematic, but it is the only real solution unless AI can magically get us out of this mess. tariffs will have a negligible impact on this.