Bryan Brulotte: America is quietly and softly defaulting on its debt

2026-02-12 - 11:05

No serious policymaker in Washington is proposing an explicit default on U.S. debt. That would be reckless and unnecessary. Instead, the United States appears to be pursuing a more subtle strategy: a soft default, reducing the real value of its obligations through currency depreciation, negative real interest rates and accounting choices that quietly transfer costs to creditors and households. This is not a conspiracy theory. It is a well-worn playbook that has been used by heavily indebted states across history. What is notable today is the scale, coordination and global implications. Read More