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Reality is in between your two takes, IMO. There is a limit to the debt-to-GDP ratio before reality takes over. Baked into the assumptions on debt is inherent
by Enginerrrd 5y ago
Reality is in between your two takes, IMO.
There is a limit to the debt-to-GDP ratio before reality takes over. Baked into the assumptions on debt is inherent growth in GDP. It's rare, but there are scenarios where you may see real contraction in GDP and, frankly the present geopolitical and global economic climate is ripe for such events. If that happens, then the US entering some inflationary spiral to service debt isn't totally 100,000 year "ice-age" ridiculous. It's more like ~100 year cold snap.