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"At 100.1% of GDP, the debt already exceeds the annual output of the economy, putting the U.S. in company with economies including Greece, Italy & Japan"
Sorry, but no, not even close
158%
207%
250%
Media shouldn't be framing the debt as an issue <at all> right now 1/ https://twitter.com/KateDavidson/status/1351233000852369411
Sorry, but no, not even close
158% 207% 250%Media shouldn't be framing the debt as an issue <at all> right now 1/ https://twitter.com/KateDavidson/status/1351233000852369411
& have permanent fixed exchange rates as EZ members & effectively borrow in foreign currency borrows at US rates & has carried debt 2.5x ours for decadesNone of these countries issue the dominant global reserve currency 2/ https://twitter.com/mcopelov/status/1291832638886547457?s=20
There isn't a model in which a country issuing a global reserve currencies, w/ a floating XR, in a time of unprecedented global capital faces a debt walls at 100%+ of GDP. Let's not rehash the 90% thing again.
This is all politics & faux deficit hackery: https://twitter.com/mcopelov/status/1303376438733811713?s=20
This is all politics & faux deficit hackery: https://twitter.com/mcopelov/status/1303376438733811713?s=20
This type of media coverage is <exactly> how we ended up with a Lost Decade the last time around. "We're just asking questions, responsibly" feeds the household analogy and the rush to premature austerity.
Let's not do it again, given the data, please:
https://twitter.com/mcopelov/status/1085588312184811522?s=20
Let's not do it again, given the data, please:
https://twitter.com/mcopelov/status/1085588312184811522?s=20
These are great charts. But they illustrate the point. 40-year secular decline in interest rates. Unprecedented global capital & low debt service.
Let's say the debt/GDP forecast <is> correct. So what? By 2050,
debt wouldn't even reach / levels.
Let's say the debt/GDP forecast <is> correct. So what? By 2050,
debt wouldn't even reach / levels.
So again, what is the goal of writing this article now? What is your model by which US debt is remotely unsustainable? The economic answer to "The Debt Question" and "How Much is Too Much" is "Who knows, but we're not remotely close to finding out anytime in the next decades."
Tl;dr: The US faces no meaningful fiscal constraint, now or as far as the eye can see, and anyone telling you otherwise is making an entirely political argument and is trying to sell you something (usually tax & Social Security/Medicare cuts) for purely ideological reasons.
I realize this "feels" wrong/unserious/irresponsible etc. It <must> be the case that the debt is an issue given LARGE NOMINAL NUMBERS. But it's almost impossible to overstate how nonexistent these concerns should be, in 2021, for the US. https://twitter.com/mcopelov/status/1288113481003147267?s=20
