The end result of structural fiscal unsustainability is likely to be inflation rather than default, because the U.S. government can finance its debts in its own currency indefinitely and the Fed can monetize deficits, so the political path of least resistance is to allow above-target inflation rather than cut spending or raise taxes.

causalpending

Speaker

Lynn Alden

Evidence Quote

the end result is likely inflation uh so generally when a country um you know has debts now in its own currency uh it's able to finance things with its own Central Bank as much as it wants

Source

Lyn Alden: Money Is ‘Broken’, Markets Face ‘Rerating’ RisksDavid Lin
Created: 8/12/2026, 10:26:01 PM

My Notes

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