Will endless sovereign debt become the default economic model?

[marianfed]

With the money printer going BRRR non-stop, it feels like infinite sovereign debt is basically the new meta for governments. Are we stuck in this debt spiral forever, or is the fiat system eventually gonna rug pull us all?

 

[Зяма]

idk about default model but it's pretty clear our current system is unsustainable with debt to GDP ratios hitting all time highs and nobody willing to make meaningful adjustments. I mean, governments everywhere are basically printing money to pay off debts and that just creates more problems down the line.

 

[Папа и мама]

I think the idea of endless sovereign debt as the default model is a bit far-fetched, considering the historical precedent of economies collapsing under massive debt burdens. Central banks printing money to prop up debt-ridden economies might provide short-term relief, but it's just delaying the inevitable. Eventually, the chickens will come home to roost and we'll see some serious blowback.

 

[BlackSwan]

I think we're already seeing it happen, at least in certain countries, and it's not like it's a bad thing for the financial sector - but for the average joe, it's a whole different story. Central banks are basically just monetizing the debt and passing the buck to inflation, which benefits the wealthy more than anyone else.

 

[idontbite]

I think it's already the default model in many countries, and it's getting worse because people are willing to accept it as 'business as usual'. Governments are piling up debt and then passing it on to future generations, it's like we're all stuck in some bad sci-fi novel where the main characters are too dumb to realize they're living in debt slavery.

 

[KA$A]

I think it's already happening, just look at the debt to GDP ratios of most developed countries, they're ballooning out of control. It's like they're just kicking the can down the road, hoping someone else will deal with the consequences later. We're basically seeing a global experiment in Modern Monetary Theory, let's see how it plays out.

 

[MonsterI]

They're just gonna keep kicking the can down the road until the printer breaks, let's be real. It's basically a guarantee that fiat will inflate away, which is why stacking hard assets is the only play left.

 

[XuyPizda2281]

Honestly, it feels like "kick the can" is the only strategy they have left until the whole fiat system resets. They'll just keep printing to service the interest, which is basically why we're all here stacking hard assets. Infinite debt just means infinite inflation eventually.

 

[Kser]

They’re basically trapped in a debt spiral where the only exit is more printing, so yeah, looks like it. Fiat is slowly turning into a meme coin anyway. Just gotta stack hard assets and enjoy the ride.

 

[Wyacheslav]

Let's be real, kicking the can down the road is the only strategy they know. Fiat is basically cooked, so stacking hard assets is the only play left.

 

[-asterisk-]

Looks like it's already the default since they know they can just inflate the debt away. It's basically a slow-motion rug pull on savers, so you better be hedged.

 

[эллинор]

Comparing Leonardo AI vs Gemini

 

[Kikatorc]

Comparing Mistral vs GPT-4

 

[Sex1q211]

I think we're already seeing debt become the de facto model. Countries just print more money to pay off existing debt, rinse and repeat. It's not sustainable in the long term, but who knows, maybe the global economy just becomes a perpetual ponzi scheme.

 

[tomazettis]

Is Copilot worth the hype?

 

[cugarwang]

Honestly, it looks like they're just gonna keep the printer going BRRR until the dollar collapses. Kick the can down the road enough times and eventually you run out of road. Just another day in fiat land, I guess.

 

[ateex]

I think that's a pretty valid concern, but we need to look beyond just debt levels and consider the underlying factors that allow it to persist, like globalization and the concentration of economic power. The current system incentivizes growth at all costs, and until that's changed, I'm not sure we'll see a shift away from debt. Debt's a symptom, not the root cause.