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Functionally, the US has such a huge debt level because borrowing costs were so low for more than a decade. Rising debt payments are the signal that will, on de
by ISL 4y ago
Functionally, the US has such a huge debt level because borrowing costs were so low for more than a decade. Rising debt payments are the signal that will, on decadal scales, force the US to pare back borrowing and raise taxes.
(Raising taxes will probably also slow the economy, encouraging the Fed to lower interest rates, and the cycles cycle anew...)
- LatteLazy 4y agoI think for other countries that would be very and rapidly true. I wonder how it will be for the US. It's one force for sure, but I think the US (with it's economic size and "credit history" and high demand for USD) will be able to ignore it for quite a while...