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> But a large chunk is assets of financial industries and the super wealthy, and in order for it to be net paid down they have to get poorer - or at least be fo
by lixtra 8y ago
> But a large chunk is assets of financial industries and the super wealthy, and in order for it to be net paid down they have to get poorer - or at least be forced to reallocate to equities.
Do you have better data on the super rich? My impression was that they typically own companies and stocks, not T-bills. So if the top 10% don’t own the debt, it’s the next 40% (middle class) that will have to get poorer to reduce debt.
- mempko 8y agoOne thing to keep in mind is that government debt is private sector savings. The money in your bank account originated as government spending or private sector borrowing. All money is debt. If the government pays back it's debt, it will make it impossible for you to be solvent. If there was no government debt, there would be no money. The US government was in debt since this country started, and will remain in debt in the future. The government being in debt is no problem, it's not a household. Government debt is not a problem, private sector debt is.