Vinny Lingham: Zero default risk implies certain high inflation

Vinny Lingham: Zero default risk implies certain high inflation
Zero default risk linked to inflation

Vinny Lingham, co-founder, chairman and CEO at Civic, argues that a 0% probability of default equates to a 100% probability of high inflation.

He emphasizes that these two outcomes are closely linked and expresses concern that this connection is not widely understood by others.

In an earlier commentary, Lingham noted that OpenAI canceled its planned 2026 IPO after calls to slow spending on AI infrastructure due to concerns about U.S. Treasury markets. He reported that the heightened capital expenditure for AI was seen as a contributing factor to pressure on government bonds. Details on the decision are available in OpenAI pulls back 2026 IPO plan after AI capex concerns.

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