← All stories
Money

Guest argues a US ‘debt crisis’ would look unlike typical sovereign defaults

The Ezra Klein Show · What the Heck Is Going On in the Bond Market? | The Ezra Klein Show · August 28, 2026
Guest argues a US ‘debt crisis’ would look unlike typical sovereign defaults
The Ezra Klein Show
The Ezra Klein Show
What the Heck Is Going On in the Bond Market? | The Ezra Klein Show
"First of all, the US can't really go bankrupt unless it chooses to. I mean, the US only borrows in dollars and it can create dollars."
Wigglesworth tells Klein that even if investors worry about US debt sustainability, a conventional default is unlikely because the US issues debt in its own currency. He says the more plausible crisis scenarios would involve political capture of monetary policy and large-scale money creation, with consequences such as runaway inflation and financial system stress rather than a standard restructuring.
From this episode
The Ezra Klein Show
The Ezra Klein Show

What the Heck Is Going On in the Bond Market? | The Ezra Klein Show

August 31, 2026 · 58m · 3 Egleze moments
Read episode summary and key points →

More moments from this episode

MoneyWigglesworth says Bessent’s Treasury buybacks sound like “desperation”MoneyUS interest bill now exceeds defence spending, Wigglesworth says
More stories More from The Ezra Klein Show