With no productivity/tax/exports increase they depend on bond sales to pay interest on existing bonds and support government costs - the debt spiral. Whether they can support this by domestic bond purchases but may be inflationary..
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In theory controlling discretionary spending can contribute to reducing the deficit, but despite "savings" in the #OBBB they've been spending more not less, which is puzzling. Overspending the budget will trigger an alarm in bond markets/inflation, that's for sure. To go like that'd be dumbfounding.
aug 30, 2025, 12:11 am • 1 0 • view
But what Vance's discussing is actually a textbook example of whether "experts" should prevail over sentiment or should government decisions be guided too by how people feel about issues. Kahneman writes about it in "Thinking, Fast and Slow" noting Slovic and Sunstein and weighs in for a middle way.
aug 30, 2025, 12:28 am • 1 0 • view
Psychology is weaponised against the people since a long time ago, this is just blatantly scripted...
aug 30, 2025, 12:32 am • 1 0 • view