>This meant there was inelastic demand for U.S. treasuries, which basically made it impossible for the U.S. to not run a deficit, either in terms of trade or the federal budget.
Ease of borrowing does not force a government to run a deficit, which is entirely a political choice.
The US could have taken its king dollar and immense credit to fund a technological paradise. But it instead funded stupid wars and bailed out giant banks. This is a problem entirely created by oneself.
Ease of borrowing does not force a government to run a deficit, which is entirely a political choice.