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That’s correct, it depends on change on the money supply of fiat, which mainly depends on what central banks & governments do. However, they are trapped in the debt spiral. QE infinity and ever increasing deficit spending is inevitable.

Remember, there are three ways the US can lower its debt:

Austerity (lower spending to create surpluses) → political suicide

Raise Taxes → Likely political suicide that eventually leading to lower productivity anyway

Allow for higher structural inflation → higher nominal GDP leads to higher taxes leads to lower deficits (easy peasy)

Which do you think they will do?

pipe 2y ago

There is a 4th way:

Grow the economy.

For instance, by utilizing some new technology.

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Discussion

Gary ₿usey 2y ago

Speaking of new tech. As a superconductive material, do ya think LK-99 will have a positive or negative effect on mining difficulty? Lol. This discussion went on for awhile, last night. 😁

Bitopia 2y ago

This is true. But one could say it is a form of austerity as well...

The economy grows is the government retreats from as many markets as possible.

StackSats ⚡️ 2y ago

I am talking about what the government can do to reduce debt. Technological progress never comes from the government. The only thing they can to to push GDP (at least on a nominal basis) is via stimulus aka expanding money supply.

They can hope on magical GDP growth but that’s not really an actionable option.

RenaissanceMan 2y ago

I’m not even sure what “grow the economy" means.

I am sure that mindless over consumption is evil.