• AA5B@lemmy.world
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      2 months ago

      And I wouldn’t put it past certain politicians to think this way. But currencies are valued based on economies, trading, their use in international exchange. It’s quite normal for an overleveraged country to have its currency devalued relative to everyone else. Sometimes by a lot.

      Again, certain politicians have very little intelligent thought so they may even like this idea because your goods are cheaper, easier to export. Certain businessmen could really enrich themselves …… if you don’t think or care about everyone else suffering under huge inflation, your economy flat lining without imports, even as tooling or ingredients.

    • Bronzebeard@lemmy.zip
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      2 months ago

      That debt is through Treasury bonds. They pay out that interest as it comes due. If they didn’t, no one would but those bonds and they’d immediately be unable to borrow any more money to continue this spending scheme