Krugman has this to say about it:
For those not familiar with how financial markets work, US Treasuries are the ultimate safe asset, used as collateral for everything. Even a hint that some Treasuries might not be honored could bring everything to a screeching halt
Musk and Trump are both in the habit of stiffing people they owe money. If markets even suspect that this habit will extend to Treasuries, God help us
We are very very far from anything like the Star Trek prosperity society though. I’m not expecting changes to monetary policy to be able to get us there either; they’re a way to moderately improve peoples’ lot, and to shift the balance of power from capital to labor and tiny bit
I worry that by keeping our Ship of Theseus from sinking we’re missing out on something way better
We could be, but are also avoiding a lot of drownings that are likely if we try disassembling it while at sea
Yeah, grains have painted us into a corner
Well, you’re in luck. They’re actively scuttling the ship as we speak. Whether you’re going to like the new one remains to be seen. I have a feeling it will be much smaller and is already full.