Full of shit. I don't care if you're leading a hedge fund or a university, if you actually believe this bullshit, you're a lot dumber than you think.
I mean, sure, if you're going by the definition of "insolvent", then sure the US is....
FUCK NO. You can't do that.
The gov't has unlimited ability to borrow money and anyone who has ever held a retirement fund has benefitted from this. Hell, 32 out of 38 OECD countries have a net debt and would be considered "insolvent" according to these authors.
But the practical definition of "insolvency" is the inability to pay your debts. That the US can borrow (and as I've said often, can also buy its own debt via the Federal Reserve), there is no realistic threat of the gov't being unable to pay its debts.
#USEconomy #USPol
I mean, sure, if you're going by the definition of "insolvent", then sure the US is....
FUCK NO. You can't do that.
The gov't has unlimited ability to borrow money and anyone who has ever held a retirement fund has benefitted from this. Hell, 32 out of 38 OECD countries have a net debt and would be considered "insolvent" according to these authors.
But the practical definition of "insolvency" is the inability to pay your debts. That the US can borrow (and as I've said often, can also buy its own debt via the Federal Reserve), there is no realistic threat of the gov't being unable to pay its debts.
#USEconomy #USPol
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