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Debt is unsustainable when the market says it is. When the market is paying you to lend you money, it's not unsustainable.
by redthrowaway 11y ago
Debt is unsustainable when the market says it is. When the market is paying you to lend you money, it's not unsustainable.
- ZoeZoeBee 11y agoNegative interest rates are indicative of a very unhealthy economy incapable of growing, the same market "paying you to lend money" is actively taking away money from the savers by providing interest rates much lower than the actual rate of inflation. Without real growth the debt will continue to grow, until more of the budget is devoted towards paying interest instead of the places its needed.
- redthrowaway 11y agoIt's more a symptom of an extremely chaotic and uncertain global economy than a weak American one. Investors are willing to pay the USG to lend it money because American treasuries are seen as one of the few safe places left to stash your cash. American growth is mediocre, but far less so than that of other developed nations. Europe is still scrambling to find ever-larger guns with which to blow its own feet off, Canada and Australia are realizing that building an economy on Chinese demand for resources is bound to end in tears, and the BRICS are suddenly looking much less lucrative. The US is still the driver of the global economy, and is doing kind of okay while everyone else is a basket case.
- ZoeZoeBee 11y agoFor the time being, the problem is things aren't getting better and after numerous false starts, the problems of the world which have merely been masked over the last 8 years will have to be dealt with. Never mind the coming Demographic crisis, in Japan, China, almost all of the EU, Canada Australia and the US eventually as well, you're right we are better than most of those but all of those are hitting a brick wall