Linguofreak
Well-known member
You know, the same people complain about the federal reserve printing money as they like.
The federal reserve can only collapse organisationally - if an epidemic makes too many employees unable to work. But they can never get bankrupt. For that, the USA would have to collapse first.
Well, arguably, printing money to pay off debt is just a sneaky way of defaulting, and when enough people wise up to what you're doing, the result is the same: they hike up the interest rate when they offer you credit, and eventually, if it gets bad enough, they stop lending to you because they can't get any ROI.
So the Federal Reserve may not ever officially go bankrupt, but eventually US federal bonds will be junk-grade.
Now, that's not to say that, in my opinion, we shouldn't be spending money on COVID relief, just that we should have been spending responsibly before so that we'd be in a halfways solvent state going in to such an emergency.