Just a note to say that I very much support you sending out short (even super duper short) newsletters around each episode. It ties the Search Engine experience together! I'd actually missed a few episodes when they were published because there wasn't an accompanying newsletter. I know that each added step of publishing a show can be onerous and sometimes feel not completely necessary, but I think that for your show, where much of your audience/community is in conversation with you, it's very much worth the effort. For me, at least, it doesn't feel like a "promo," but rather a very welcome update from a project I care about. Sorry to belabor this point with a long-ass public message about something so small – this is why I should probably be using AI to edit everything I write.
PJ, your episode got so close to a huge idea: the real risk isn't the size of the debt, it's what we spend on — but framing borrowing as the government's "funding" still reinforces the old (and wrong) idea that the government is like a household. After the US left the gold standard in 1971, they've been spending by creating money, not borrowing it first — and bonds are just tools to manage interest rates, not to "fund" spending. A follow-up episode could totally flip how people think about debt and inflation today, especially if you brought on someone like Stephanie Kelton (The Deficit Myth) or Warren Mosler (founder of Modern Monetary Theory) to unpack it. I love your story telling style (I think our brains work similarly) and would really love to hear you delve into this topic as there are so many interesting aspects (look up tally sticks for instance).
Yes! Came here to post exactly this. PJ, please please please do a follow up episode with Stephanie Kelton and discuss Modern Monetary Policy. The federal government can’t default on our debt because it is paid in our sovereign currency. We can certainly risk the USD’s status as the world’s reserve currency, but that is a lot more nuanced than “we can’t make our loan payment.”
The national debt matters, but is inextricably linked to a more important issue, lagging productivity. Without growth you cannot pay down the debt, nor deliver on the promise of democracy, and factions turn on each other. https://gregblonder.medium.com/stop-doing-stupid-164fc209f68a
This made me feel nervous because it seems very clear to me that something is not right and not sustainable about how the US economy has been working for a while. This episode helped me understand some of the specifics about this very very complex topic.
If Sovereign Default happens, can California run its economy on its own and have bonds backed globally? Basically can The states become their own countries?
If Sovereign Default happens, can California run its economy on its own and have bonds backed globally? Basically can The states become their own countries?
If Sovereign Default happens, can California run its economy on its own and have bonds backed globally? Basically can The states become their own countries?
If Sovereign Default happens, can California run its economy on its own and have bonds backed globally? Basically can The states become their own countries?
If Sovereign Default happens, can California run its economy on its own and have bonds backed globally? Basically can The states become their own countries?
If Sovereign Default happens, can California run its economy on its own and have bonds backed globally? Basically can The states become their own countries?
Hey PJ, great episode! Although I'm not a US citizen, I learned a lot! One question: can you please share what the title is of the track that starts around 4:45. It's also used in a video game, in a main menu, but I can't remember which, and it's driving me nuts!
This episode makes me feel the collapse of the American economy and infrastructure will come in the next few months. That feels like such a radical alarmist thing to say but if it's likely that the US will default on their debt and cause many countries to not do business with us, plus all the other stuff Trump is doing, it feels like something I need to prepare for.
I know I'm definitely in a panic and anxiety mode at the moment, but once that settles down I really want to figure out how to prepare myself and my family for what may come. I wonder if anyone feels the same way. And if I'm overreacting, please let me know lol
The US debt is all the money, including treasuries, in the economy that has not been taxed out. It’s the money in your wallet (currency is a gov’t IOU) and the treasuries held by your retirement account - we, the people, don’t owe the debt, we own it. Also, the money used to buy treasuries came from the gov’t in the first place - it’s not a borrowing operation, it’s a swap - like moving your money from checking to savings.
Just a note to say that I very much support you sending out short (even super duper short) newsletters around each episode. It ties the Search Engine experience together! I'd actually missed a few episodes when they were published because there wasn't an accompanying newsletter. I know that each added step of publishing a show can be onerous and sometimes feel not completely necessary, but I think that for your show, where much of your audience/community is in conversation with you, it's very much worth the effort. For me, at least, it doesn't feel like a "promo," but rather a very welcome update from a project I care about. Sorry to belabor this point with a long-ass public message about something so small – this is why I should probably be using AI to edit everything I write.
I so appreciate it Eric, thanks. I'll keep them coming here.
PJ
I agree!
😀 Hi Laurie!
Ok fully did not even notice that comment was by someone I know, hi, Eric! Haha
PJ, your episode got so close to a huge idea: the real risk isn't the size of the debt, it's what we spend on — but framing borrowing as the government's "funding" still reinforces the old (and wrong) idea that the government is like a household. After the US left the gold standard in 1971, they've been spending by creating money, not borrowing it first — and bonds are just tools to manage interest rates, not to "fund" spending. A follow-up episode could totally flip how people think about debt and inflation today, especially if you brought on someone like Stephanie Kelton (The Deficit Myth) or Warren Mosler (founder of Modern Monetary Theory) to unpack it. I love your story telling style (I think our brains work similarly) and would really love to hear you delve into this topic as there are so many interesting aspects (look up tally sticks for instance).
Yes! Came here to post exactly this. PJ, please please please do a follow up episode with Stephanie Kelton and discuss Modern Monetary Policy. The federal government can’t default on our debt because it is paid in our sovereign currency. We can certainly risk the USD’s status as the world’s reserve currency, but that is a lot more nuanced than “we can’t make our loan payment.”
The national debt matters, but is inextricably linked to a more important issue, lagging productivity. Without growth you cannot pay down the debt, nor deliver on the promise of democracy, and factions turn on each other. https://gregblonder.medium.com/stop-doing-stupid-164fc209f68a
Almost as if government & private debt is the precursor to GDP.
This made me feel nervous because it seems very clear to me that something is not right and not sustainable about how the US economy has been working for a while. This episode helped me understand some of the specifics about this very very complex topic.
FYI the link to Noah Smith’s substack page is a 404
Not anymore it's not! Thanks for the catch, I'll update on the episode, too.
"He did this while rapping" - amazing line played straight.
Tangerine
If Sovereign Default happens, can California run its economy on its own and have bonds backed globally? Basically can The states become their own countries?
If Sovereign Default happens, can California run its economy on its own and have bonds backed globally? Basically can The states become their own countries?
If Sovereign Default happens, can California run its economy on its own and have bonds backed globally? Basically can The states become their own countries?
If Sovereign Default happens, can California run its economy on its own and have bonds backed globally? Basically can The states become their own countries?
If Sovereign Default happens, can California run its economy on its own and have bonds backed globally? Basically can The states become their own countries?
If Sovereign Default happens, can California run its economy on its own and have bonds backed globally? Basically can The states become their own countries?
Hey PJ, great episode! Although I'm not a US citizen, I learned a lot! One question: can you please share what the title is of the track that starts around 4:45. It's also used in a video game, in a main menu, but I can't remember which, and it's driving me nuts!
This episode makes me feel the collapse of the American economy and infrastructure will come in the next few months. That feels like such a radical alarmist thing to say but if it's likely that the US will default on their debt and cause many countries to not do business with us, plus all the other stuff Trump is doing, it feels like something I need to prepare for.
I know I'm definitely in a panic and anxiety mode at the moment, but once that settles down I really want to figure out how to prepare myself and my family for what may come. I wonder if anyone feels the same way. And if I'm overreacting, please let me know lol
The US debt is all the money, including treasuries, in the economy that has not been taxed out. It’s the money in your wallet (currency is a gov’t IOU) and the treasuries held by your retirement account - we, the people, don’t owe the debt, we own it. Also, the money used to buy treasuries came from the gov’t in the first place - it’s not a borrowing operation, it’s a swap - like moving your money from checking to savings.