The USD "IS" the debt. A dollar is created out of a digital ledger going "poof, there's a new dollar." There's no difference. It's just about who holds the receipt. When debt is created, there is interest owed on the debt. The interest is the danger on both sides. You need interest rates high enough that banks and other nations will want to invest in the dollar, but low enough that it still allows for economic growth. Right now the fed is stuck between the walls closing in on both sides. They need to lower rates to stop unemployment from ramping up and they need to raise rates to fight inflation at the same time. The options are getting increasingly worse on both sides. Eventually the fed will give in and be forced to cut because of the political outcry and inflation will just run fucking rampant again.
