Bond market already knows.
But this time it’s an ugly double whammy as it’s both the AI companies and the US government that won’t be able to pay their debt, and they are interlinked.
If it comes to it, the US is constitutionally barred from just defaulting on its debts. And the US government can just print more money. Which will massively devalue the USD, tanking the economy and killing their ability to borrow more in the future, but it’ll still technically allow them to pay off the current debt.
Bond market already knows. But this time it’s an ugly double whammy as it’s both the AI companies and the US government that won’t be able to pay their debt, and they are interlinked.
If it comes to it, the US is constitutionally barred from just defaulting on its debts. And the US government can just print more money. Which will massively devalue the USD, tanking the economy and killing their ability to borrow more in the future, but it’ll still technically allow them to pay off the current debt.
Technically, yes - but not in a way that foreign investors would want to lend any more money in the future.