nostr:nprofile1qy2hwumn8ghj7un9d3shjtnyd968gmewwp6kyqpqkm0c2acs6t44k2xmt7wu08yxfca2k9vza9exmx2c53pspf869d4qwacsvk
US debt hits $40 trillion: Who does Washington owe and why does it matter?
Analysts ...
@nprofile1q...
"This debt is slowing growth"
Debt doesn't slow growth if it's going back into the economy -- see fiscal multipliers.
"pushing up interest rates"
Not necessarily so. We had a shrinking debt in the late-90s but rates were well over 7%.
"worsening inflation"
Not necessarily so. Japan has a debt-to-GDP ratio well over 200% and spent most of the last 3 decades at Zero Interest Rate Policy.
"This debt is slowing growth"
Debt doesn't slow growth if it's going back into the economy -- see fiscal multipliers.
"pushing up interest rates"
Not necessarily so. We had a shrinking debt in the late-90s but rates were well over 7%.
"worsening inflation"
Not necessarily so. Japan has a debt-to-GDP ratio well over 200% and spent most of the last 3 decades at Zero Interest Rate Policy.
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