Comment by nikitaga
5 hours ago
It's not going to be a net win for anyone. A country that needs to keep borrowing to stay afloat is not going to improve its position by effectively defaulting on its debt, regardless of the exact method or type of assets involved.
The USA might hold a majority of the worlds value generation in a few decades. If AI generated in the USA powers everything. Then the USA does not need to borrow anymore.
That outcome seems unlikely. Both that AI will remain dominated by USA for a few decades, and that they will use newfound profits to eliminate budget deficit.
And why would they want to default on their debts in this hypothetical future where they've "made it", raking in AI profits from everyone. They would work hard to preserve that world order and not shake things up unnecessarily.