98% of countries in the last 120 years who hit 130% debt-to-GDP ratio ended up defaulting – what will happen to the USA?
by bolognatowel
98% of countries in the last 120 years who hit 130% debt-to-GDP ratio ended up defaulting – what will happen to the USA?
by bolognatowel
7 comments
Default. It’ll be the last to do it, though
Who were the other 2%?
The US debt to GDP ratio has fallen a lot since COVID. More people are working than ever and each worker is producing more than ever. It’s about [where it was after WW2](https://fred.stlouisfed.org/series/GFDGDPA188S).
Last quarter, nominal GDP growth was 8.6 percent (annualized). We are eroding our debt quickly by growing and being more productive.
And the costs side is being addressed. We are building new factories to increase our supply of things like computer chips. Medicare costs are finally under control and even falling relative to GDP, as we negotiate prices with private drug companies and get some of the dividends of Medicaid expansion.
I’m really not worried about the US debt at all, and it seems like everyone who pretends to be just wants to rob the government.
Ya think. The 2 Trillion dollar Trump rich tax cuts created this and they couldn’t care less.
How does a sovereign currency issuer ever default on its debt?
Oh man I thought our economy was booming
Much of the US debt is to other governmental institutions, so for now, this isn’t likely to be an issue. Long term if it grows it could be.
The US needs to set tax rates to level in the late 90’s and they should be able to decrease the deficit and even have a surplus like they did back then, under Clinton, and the Democrats.