Paul Krugman   Dear Professor:-  Well-informed people betting real money brought us the 2008 Great Recession (aided, of course, by a good deal of regulatory capture). The same for the so-called smart money that invested in crypto. Most of them showed no signs of concern until it was too late. Most aren't as smart as they like to think.The federal government spends about $6 trillion every year, about $1 trillion of which is borrowed. It will be possible for the government to carry an evergreen loan forever, always adding to the principal, and paying ever more interest, until it isn't.  The currency will be debased, but that's a problem for the next generation.The comparison with our debt after World War II is not a good comparison, as the government had borrowed heavily to finance a shooting war. Wasn't the debt paid off shortly thereafter?

Paul Krugman   Dear Professor:-  Well-informed people betting real money brought us the 2008 Great Recession (aided, of course, by a good deal of regulatory capture). The same for the so-called smart money that invested in crypto. Most of them showed no signs of concern until it was too late. Most aren't as smart as they like to think.The federal government spends about $6 trillion every year, about $1 trillion of which is borrowed. It will be possible for the government to carry an evergreen loan forever, always adding to the principal, and paying ever more interest, until it isn't.  The currency will be debased, but that's a problem for the next generation.The comparison with our debt after World War II is not a good comparison, as the government had borrowed heavily to finance a shooting war. Wasn't the debt paid off shortly thereafter?

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