> That doesn't pass muster. If they had much interest in balancing the books, they wouldn't be ripping huge holes in revenue collection.
It's not about balancing the books. It's about not making a problem far worse.
You remember the global financial crisis of 2008? The reason most of the bailed out countries requested bailouts was their bonds spiraling out of control when they had to refinance their debt. That was the primary reason they reached out to the likes of IMF and had to undergo austerity programs.
The Trump administration put the US on that path with their global tarrifs and provoking their main trading partners, specially China.
While I agree on the direction I don't think the specific argument completely holds.
The countries in this situation in 2008 where European countries that forfeited their central banks. Having relatively recently switched to the Euro made this situation relatively novel and those governments not used to not have access to this last resort tool. There was also a lack of legislation at the European level to give the central bank authority to intervene. And culturally some countries where much more scared by their recent history by the inflation risk. Which led to push backs and delays in the face or urgency. It's now probably roughly sorted at the EU level.
The USA don't have and never had this issue. The position of the FED is very clear: it will never let the US govt default. So the only risk for US bond holders is inflation (and price if they want to exit early).
It's not about balancing the books. It's about not making a problem far worse.
You remember the global financial crisis of 2008? The reason most of the bailed out countries requested bailouts was their bonds spiraling out of control when they had to refinance their debt. That was the primary reason they reached out to the likes of IMF and had to undergo austerity programs.
The Trump administration put the US on that path with their global tarrifs and provoking their main trading partners, specially China.