4 ms·
>US debt as a percentage of GDP (i.e. our ability to pay off our debt) US debt as a percentage of GDP doesn't demonstrate the continued ability to pay off the
by TeaBrain 2y ago
>US debt as a percentage of GDP (i.e. our ability to pay off our debt)
US debt as a percentage of GDP doesn't demonstrate the continued ability to pay off the debt, since the ability to pay off the debt is dependent on that debt's interest. The issue with the debt in the current environment is that it is going to start rolling over into higher interest rates. If the debt is structured to pay higher interest then that lessens the ability to pay off the debt even if the debt as a percentage of GDP stays the same.
- bux93 2y agoRipping apart institutions is a great way to increase interest rates.