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Bonds go bonkers as the US government now pays more than Vietnam or Morocco to borrow
(markets.businessinsider.com)
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this post was submitted on 15 Nov 2023
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The ratings agencies basically said a Republican Congress and a Democratic President is the biggest risk to debt repayment. It isn't that the government doesn't have the money, but that it won't spend it.
That’s the point. The US has effectively unlimited money, or let’s say unlimited liquidity, so their ability to repay is purely based on political issues. That they can’t get their shit together enough politically to avoid their own borrowing costs going up is extremely funny and embarrassing.