Some experts have modeled that the United States interest payment will hit $1.6 trillion by year end, making it the largest US Government outlay. In nearly every other nation in the world, that would be an economic apocalypse. But for the United States with the custodial of the dollar, the impact would be muted.
Why? In an Igbo novel, Uwadiegwu, the author dropped a great hint: when you borrow, go to your kinsman so that if the debt goes bad, he may lock you up but at the same time he would be expected to take care of your family since he is your kinsman! That is how debts work: pains are lesser when the debt is home. America borrows dollars and they’re responsible for printing dollars. No other country enjoys that combo.
So, provided the US has those special printers, they can print US dollars, and if necessary flood the world with dollars. Like the Igbo name “Nwaoha” – a child is born to the community, not just to the parents – the US dollar is a currency for the world, and not just for America. So, when the US prints, and triggers inflation, everyone shares the fun!
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In summary, the US does not really have much to worry about borrowing and borrowing, unlike say my amazing Nigeria which must EARN the US dollars, to pay its dollar-denominated loans since we do not have the special printers in Nigeria. That is the reason those pundits comparing loans in America and the ones in Nigeria/Africa do not get the message: loans are better when localized, but Nigeria, unfortunately, cannot localize its “US dollar” loans! And that means we have something to worry about, unlike the Americans.
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The world is rigged, but at the same time – it does not call for complaints or blames. You simply need to figure out how to play and win, else you get played.