It seems weird, but these govts think that debt is absolutely no problem, they will never default, and the markets know this, because they can print the repayments.
They also think that what they print is owed to them (!), it is a call they have on us through taxation, that we have no choice but to pay.
The only limit to printing is, these govts think, from inflation, as demand starts to outstrip supply (of goods, capital, labour).
So as reality (inflation) is now undermining their principles, will they change their theory? No no no, just deny that there is any inflation.
We hope they're right, and inflation really is temporary while demand/supply gets back into balance.
But as a warning, from what I read, equities will generally suffer if inflation gets to 5%.
Aaaah, I hear you say, is that: RPI, CPI or CPIH? And how are they fiddled.
So what will get us? Debt? Covid? Climate change? Net zero? The Chinese?
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