I wasn’t so much thinking about whether the appetites of the borrowers would ever run out, but more of the effect of inflating/debasing the currency.
Yea. But if the money’s in a government bond, it’s not in circulation. Obviously, if everyone decided to sell their bonds all at the same time (kind of government run-on bank) the currency would tank, but that’s not going to happen. The people who buy those things are very happy to sit them in safe deposit boxes and watch the interest checks come in.
On that I’m not sure we’re in uncharted territory. It goes at least back to the 3rd century Roman empire. Then there are modern examples like Zimbabwe, but to what extent such are instructive to a first-world country is debatable.
The Romans were using fiat currency?
But the larger point is, which government can be long-term trusted to keep the borrowing/printing/inflating to a “moderate” level? Free money is a drug high and there is a bottomless appetite for it.
I agree in principle. I just don’t know where the bottom of the well is, and I’ve come to think it’s a long way off.
My strategy is to die before we hit bottom. :-)