No. of Recommendations: 2
Nice analysis, but it's missing a rather large piece:
The reason why options like the 100 year bond are being floated because the debt load isn't sustainable going forward.That's a fact. Service on the debt (interest payments) now is greater than our entire defense budget. North of $800 billion just to pay the *interest* on the debt.
The article missed a lot of things. If the Germans and other Europeans start deficit spending to buy more weapons, then they're now spending money they don't have. That does 3 things:
1. Puts inflationary pressure on the Euro
2. Will drive demand for US energy (the Europeans are greening their economy, and as such don't have the energy resources to build things like they used to)
3. Will drive demand for US weapons (until they spool up their own domestic industries, they're going to have to get artillery shells and fighter jets from us, despite what the Danes are saying).
On point #3, witness Germany:
https://theaviationist.com/2025/03/26/germany-doub...Minister of Defense Boris Pistorious shut down suggestions that Germany could reverse its decision to buy the F-35A Lightning II following recent tensions between Europe and the United States.
Speaking to German media, Pistorious said “The United States is and will remain an important ally for us – also for the Bundeswehr’s equipment. This applies not only to the F-35, but also to our other projects”. Proposals to cancel Germany’s order for 35 F-35A Lightning IIs have come while the current defense and security relationship between the United States and Europe faces criticism from high ranking members of the new U.S. administration."But the Europeans can make their own fighter jets". They don't have a Generation 5 plane flying; all their have are Gen 4 aircraft like the Eurofighter Typhoon, the Gripen, and the Rafale.
Point 1 hurts the US economy because it makes our exports more expensive. On the other hand, points 2 and 3 help it.
This article isn't bad, but instead of being a clinical analysis it chooses to go off the rails and whine about Trump instead of dispassionately analyzing the macro trends driving things.
