There Only Two Solutions to a Global Debt Crisis

The Heritage Foundation reports that 40% of U.S. personal income taxes are now consumed by interest payments on federal debt. In October, $88.9 billion was paid in interest, with annual payments potentially exceeding $1 trillion. The article likens this to a person overwhelmed by credit card debt. Two solutions are suggested: hyperinflation, akin to Venezuela’s model, which could drastically devalue the debt but with severe economic consequences, and a debt jubilee, an ancient practice of erasing debt, which is seen as an unlikely remedy in the modern context.