This source explores the potential risks of the large US national debt, particularly in the context of international relations. Unlike personal debt, national debt isn't typically paid off, but its size creates a vulnerability, especially for a nation holding the global reserve currency. The author argues that a trade war with countries like China, who hold significant US debt, could incentivize them to sell off their Treasury bonds, forcing the US to print money to cover new debt and potentially leading to uncontrollable inflation. This economic vulnerability, exacerbated by adversarial trade policies, could spill over into international conflict and challenge the existing world order, a situation mirrored by the decline of previous dominant empires that faced similar economic pressures.
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