There is a tipping point for every country—determined by the demand for central bank liabilities and the demand for that country's currency—beyond which large central bank losses require either monetary financing (printing money) or inflation to service the debt; the United States is 'very far away' from this tipping point due to global demand for US dollar-denominated assets
causalpending
Speaker
Peter StellaEvidence Quote
“there is a Tipping Point for every country and the Tipping Point is can you finance the central bank's losses at a low rate of inflation”
Source
Debt Death Spirals, Fed's Losses, & Fiscal Theory Of Price Level | Peter Stella & Joseph Wang— Forward GuidanceCreated: 8/10/2026, 10:58:24 PM
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