$175 Trillion Problem: Or How to Create the Ultimate Debt Crisis in 12 Easy Steps

Balaji S. 's latest dive into the financial abyss, "America's $175 Trillion Problem," feels like one of those epic sagas where the hero, in this case the US dollar, grabs its sword and shield, only to realize it's been fighting the wrong enemy all along - its own bad habits. The article paints a vivid picture of impending doom, but don't worry, this isn't just a 2008 rerun. Oh no, we're aiming for something far worse! And the best part? We're apparently hurtling towards it faster than a high-frequency trading algorithm.

1. "More Emergency Lending than in 2008". Ah yes, the good old 2008 crisis - now fondly remembered as the "cute little recession before the big one." Balaji gives us a snapshot of the Fed dishing out more emergency loans than a college student trying to graduate on credit cards. It's like watching someone double down on a losing bet because, hey, why not, right? It worked once... sort of.
2. "Borrow Like There's No Tomorrow". Forget about those COVID-era loans at near-zero interest rates. Who wants to live in the past? Today, we're borrowing more than ever, and this time at real rates! Because nothing says "sound economic policy" like maxing out credit cards to fund the "Biden Boom," which makes even COVID borrowing look quaint. It's almost charming how we treat fiscal responsibility like an antiquated concept - something we did back in the day, like wearing hats in public.
3. "More Interest than Defense". Apparently, the biggest line item in the US budget is now interest payments on our debt. Imagine waking up one day and realizing your biggest monthly expense is paying off old student loans. Not rent. Not food. Just the ever-growing interest monster. And hey, at least you don't have to worry about funding pesky little things like defense or social security - that's just a luxury now.
4. "De-dollarization and the Great Global Breakup". Balaji brings the juicy drama here. While the US clings to the dollar like an ex who won't stop texting, China and the BRICS nations are quietly moving on, dumping US Treasuries and flirting with gold. It's like the US was once the most popular kid in school, but now everyone's realized they don't need the dollar to buy snacks or do their homework anymore. Ouch.
5. "Russia and China: The Unexpected Tech Bros". As Balaji astutely observes, Russia and China are building their alternative payment networks like seasoned fintech disruptors. Russia's central bank has turned into a lean, mean, crypto-curious machine, and China's rolling out the digital yuan like it's the iPhone 17. Meanwhile, the US is still on dial-up AOL. It's not that Putin's some evil genius (well, debatable), but maybe the West just forgot to update its operating system. You know, classic case of "Putin's not that strong, we're just that weak."
6. "The $175 Trillion Elephant in the Room". Balaji closes with the big number: $175 trillion. That's right, we've moved beyond mere trillions to almost fantastical levels of debt. It's the kind of number you see and think, "Eh, why not? Just add it to the tab." This, Balaji assures us, is the unkeepable promise the US has made to retirees, allies, and probably anyone who wandered by and asked for a favor.

But don't worry! The solution is obvious: just throw AI at it. See, AI can solve all our problems - except, you know, math. Even if we invented seven new Apple-sized companies, we'd still only cover a fraction of this mess. So unless ChatGPT is about to become an economist and a magician simultaneously, we might want to rethink that plan.

Balaji isn't just telling us the US is heading for a debt crisis - he's giving us a front-row seat to the disaster movie. But instead of offering popcorn, he's handing us a shovel and asking us to dig our way out. It's not exactly comforting, but hey, at least it's entertaining.

Overall, Balaji's article offers an interesting and unconventional perspective on economic issues. Even if one doesn't agree with all of his conclusions, it stimulates thought and the search for new solutions. It's important to continue the discussion and analyze different viewpoints in order to make informed decisions for the benefit of society:

• Provocative conclusions as "brain fitness." Indeed, even if one doesn't agree with the author's radical predictions, they force you to think, rethink familiar ideas, and seek new solutions.
• Trends and patterns require interpretation. Statistics alone don't provide answers; it's important to be able to analyze them and draw conclusions, taking into account many factors and possible scenarios.
• The size of debt and responsibility. Large debt isn't a sentence, but it's not a reason for carelessness either. Success depends on many factors, including competent management, willingness to take risks, and the ability to adapt to a changing situation.
• The question of debt repayment. Indeed, in the modern economy, full repayment of government debt isn't mandatory. The ability to service this debt and maintain investor confidence is more important.
• Rising debt service costs. This is an alarming signal, indicating possible problems in the future. It's important to look for ways to optimize budget expenditures and stimulate economic growth.
• The Digital Yuan and Possible Consequences for the Global Economy: If China does indeed allow banks and financial institutions from other countries to open accounts with its Central Bank, this could radically change international monetary policy. Today, central banks play a leading role in managing national liquidity and lending. Access to the Chinese Central Bank could significantly alter the global economic landscape, reducing dependence on the dollar and strengthening the influence of the yuan. This would truly disrupt the existing rules of the game, and such steps could lead to a significant shift in the balance of the global financial system.
• The Russian Economy and the Technological Prowess of the Central Bank of the Russian Federation: Russia has indeed surprised many in recent years with its resilience and ability to adapt in challenging conditions. The technical competence of the Central Bank of the Russian Federation, its innovations in the field of cryptocurrencies and the development of payment systems, including the possibility of using BRICS digital currencies, are evidence that Russia is trying to find and move along its own development path outside the Western financial system.
• An interesting question you raise is whether Putin's strength is the cause of these people's weakness. Many analysts agree with Balaji that the current problems of the dollar and the global financial system are the result of internal problems, changes in plans, and an inability to respond to rapidly changing conditions. In this sense, Putin and China, as you rightly noted, are not so much the cause as a catalyst or a mirror image of the problems that already exist in the Western economic system.
• The systemic crisis genre, which you suggest is indeed taking place, and the desire to maintain the status quo without a necessary plan for the future could be devastating for the Western economy. As Balaji suggests, and your observations confirm, without a clear strategy and explanation of the rules of the game, Western countries may find themselves in a vulnerable position.

It seems that my humble musings on modern (neo)marxism, trade unions, and the concept of metastates (or network states) have caught the attention of esteemed legal scholars. I have been invited to speak at the 10th Constitutional Law Forum (ACLF) in Hong Kong on December 9-10, 2024. The event is organized by the Faculty of Law and the Centre for Comparative and Public Law at The University of Hong Kong. It will serve as a poignant case study to highlight the urgent need for innovative solutions like 'Justice-as-a-Service' or 'Court-as-a-Service,' concepts I've briefly outlined. Furthermore, I plan to showcase Singapore and its legal system, procedures, and framework as the ideal environment and breeding ground for such groundbreaking initiatives, benefiting not only the Lion City but also countries across the globe.