3 ms·
This is absurdly alarmist. While we can all agree debt isn't a good thing, there are a plethora of tools the Fed and the US Govt has at its disposal. It could:
by jorblumesea 8y ago
This is absurdly alarmist. While we can all agree debt isn't a good thing, there are a plethora of tools the Fed and the US Govt has at its disposal. It could:
Buy higher than market prices, such as how the BOJ or Eurozone manages its yield curve
Cut social spending programs such as Medicare/Medicaid/Social Security
Cut defense spending
Increase taxes
Inflation cuts existing debt amounts
Or any combination of these. Realistically, most of these.
This yield curve inversion has long been expected and isn't some kind of harbinger of doom. China meanwhile has its own set of precarious economic issues and isn't guaranteed anything.