The US government has always paid interest on the debt. It’s never missed a payment
Hard to miss a payment when you literally can just create the currency that the payment is agreed on…
The following paragraph is a good description of state bond interest rates as a policy mechanism to control general interest rates in the society (governments also decide not just the minimum but the maximum interest rate through fiscal policy to banks in terms I myself am not very familiar with, but it’s a well-known fact and it’s how governments in Europe and the US decided to put higher but capped interest rates during the 2022-2023 inflation episode, and lower it after).
However you then make a non-sequitur to bring up inflation which hadn’t appeared in the conversation until that point. What you describe is actually backwards: central banks in the west (wrongly) believe that they can fix supply-shock inflation by raising interest rates which would supposedly cool down economic activity by reducing loans and therefore economic activity (most of inflation in developed countries is explained by shocks in supply, as we are literally seeing today with the Iran war, so this doesn’t work unsurprisingly). How is it that after living the energy crisis-caused inflationary episode of 2022-2023 and the current energy-caused inflationary episode of the Iran war, you still defend that inflation comes from monetary policy?
Hard to miss a payment when you literally can just create the currency that the payment is agreed on…
The following paragraph is a good description of state bond interest rates as a policy mechanism to control general interest rates in the society (governments also decide not just the minimum but the maximum interest rate through fiscal policy to banks in terms I myself am not very familiar with, but it’s a well-known fact and it’s how governments in Europe and the US decided to put higher but capped interest rates during the 2022-2023 inflation episode, and lower it after).
However you then make a non-sequitur to bring up inflation which hadn’t appeared in the conversation until that point. What you describe is actually backwards: central banks in the west (wrongly) believe that they can fix supply-shock inflation by raising interest rates which would supposedly cool down economic activity by reducing loans and therefore economic activity (most of inflation in developed countries is explained by shocks in supply, as we are literally seeing today with the Iran war, so this doesn’t work unsurprisingly). How is it that after living the energy crisis-caused inflationary episode of 2022-2023 and the current energy-caused inflationary episode of the Iran war, you still defend that inflation comes from monetary policy?