>>>>Countries that are deeply in debt are going really pay a price as interest rates rise and normalize.
The USA national debt is slightly over 30 trillion dollars with no sign of slowing down, as interest rates rise the cost of servicing that debt will become mind boggling.<<<<
You forget we are on the Japanese model now. Japan started to “buy” it’s own debt after their terrible recession in the 90s. The rest of the west watched in anticipation to see what would happen. Japan did not have a crash. Tho it did not have a boom either. And thus America and other countries also “buy” their own debt. See the magic of it is, the govt can sidestep actually paying interest to anyone but itself. I’m no expert on how it actually works. But in the past I think if an auction for debt didn’t sell everything for offer, the treasury dept would buy the remainder.
Yes, print and buy your own debt rather than let price discovery of a true market interest rate occur
Countries certainly can monetize their own debt, it’s not a problem until it becomes one.
On Steve Bqnnon’s War Room, they have talking about this issue, the interest payments this year will be around 400 billion, in 10 years it will be over 1.2 trillion, making it perhaps the largest single expenditure in the Federal Budget.