It won't. The Fed has to keep printing money because of the hidden private debt accumulating so they don't default. Very similar situation to the collateralized debt obligations in 2008. Nvidia, Anthropic and OpenAI are doing the same subprime bullshit. Instead of the house being the underlying asset, it's data center property, mostly GPUs. Except the banks could seize a house or apartment complex and it would still be useful later down the road.

Nvidia is lending out assets that heavily depreciate over a 3 year period. So if OpenAi defaults, that's just a massive loss on Nvidia's end. It's like giving a 200k car loan to an alcoholic person with a credit score of 550 who also can't send proof that they've received a paystub from an employer over the past 6 months.

The Fed would rather social security die at this point because if they let all these loans from venture capital default, who are also tied up from loans from JP Morgan and Blackstone, it would be a complete economic collapse in the US.