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September 2023

"Stories to Watch: Unsustainable Fiscal Policy"

Arnold Kling:

At some point, the U.S. will go into a doom loop: to pay for interest on the debt, the government will have to issue more debt; this will fuel inflation, and interest rates are likely to rise; this will force interest payments even higher.

This year, with interest rates elevated to previous years, we may have already entered the doom loop.