6 June

The Trump-Musk blow-up is largely about the budget deficit in the US. The fact that we still talk about governments having to make money (through tax) or borrow it to pay for things is ridiculous. Governments create money, they don’t have to earn it or borrow it. They’re not households. A deficit doesn’t mean the country is ‘in debt’. Governments with sovereign currencies can print as much money as they like. And no, that won’t lead to hyperinflation, they’ve been doing it for years already.