Americans are from Italy, Europeans are from Japan
Many people believe that America will try to play “the Italian card”: inflating away its public debt and devaluing the currency in order to maintain international competitiveness. Europe, meanwhile, also faces skyrocketing public debt, but the strengthening euro makes inflation impossible, making Japanese-style stagnation a serious risk.
https://prosyn.org/8wKUBAm
MUNICH – The American business model has collapsed. During recent years, the United States borrowed gigantic sums of money from the rest of the word. Net capital imports exceeded $800 billion in 2008 alone. The money came largely from selling mortgage-backed securities and collateralized debt obligations, claims against claims against American homeowners (or to be precise, only against the homes themselves, as the owners were protected by the non-recourse nature of loans).