wrong. US politicians will take a leaf out of the playbook of Maduro , dictator of Venezuela, to pacify the whining American public. they will inflate the currency and impose more socialistic measures in order in theory to help the average man and the so called poor class. the masses will cheer these measures to bring about equality until these measures fail. starvation as in Venezuela will ensue. hard work productive American workers will flee across the border to Canada. you are right America is not exceptional. they will fall for the delusions of socialism. they will suffer the consequences.
Great point of view... Only short term serious problem in the US unfunded liabilities is the Pension Funds. I think some people tend to forget Fiat Money isn't a Earth mineral or God's creation, it's easily created and destroyed at will... Do you honestly believe the world will awash in Debt Servicing and go stagnate for 10-20 years ? The world is moving into the Socialist end in the Long Business Cycle, where people who don't have much want the wealthier to pay for a bigger share, and when politicians use monetary stimulus to appease and win the public ( Central Banks ex. ) That will end in a catastrophic bust and hardship, through sky high Inflation and the destruction of Private Sector, leaving the world bubble much bigger in 10-15 years then it will be after the recession of 2019. At the current rate of Debt accelerating, with Central Banks going supercharged in last decade, at some point there will be an extreme crisis followed by a Monetary Reset which will support Debt Relief ( How much who knows ). I do not see how something that is man made will bring the world to it's knees... At some point, there will be somewhat of a Debt Reset or Debt Relief, money isn't real
"The United States had a debt-to-GDP ratio of 104.17% in the year 2015 and 105.4% in 2017, according to the U.S. Bureau of Public Debt. The U.S.experienced its highest debt-to-GDP ratio in 1946 at 121.7% at the end of World War II Government Debt to GDP in Mexico is expected to be 45.30 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the MexicoGovernment Debt to GDP is projected to trend around 48.00 percent in 2020, according to our econometric models." Trump wants to build a wall to keep Mexican out. the reality is when the US is recongized as being a broke country with a dying currency the wall will exist to lock Americans in from fleeing the US to Mexico.
Zerohedge russian puppet site, is that you ? Haha, we should all buy Gold right ? I am not even American and I am telling you, your in space Name me one major economy that isn't drowning in debt, you do understand the US HAS to go in debt cause of Reserve Currency ? The demand for dollars is very very high, so it has to create a lot of them... You ever heard the term, taking it for the team ? Well that's what the US is doing, it will end bad if there isn't Debt Reset like after WW2, but when ever the dollar collapses, believe me even the worst of your nightmares will not comprehend what will happen to the world financial system. Are you russian or chinese ? You need to be seriously biased against the United States, or have be Economically ignorant to say the US and there dollar will collapse cause of current Debt to GDP... In 30 years time maybe, but not anytime soon. You wanna see collapses, look at Emerging markets Bonds Issued in US Dollars. You will see many EM collapsing in 19-20
Meh... a lot of the debt is structured in our own sovereign currency, which makes it easier to “spread the chaos”. I highly doubt the dollar collapses anytime soon. If D/GDP reaches 200-1, you’ll see a bunch of politicians scrambling to satiate it. Until then, I’m not that worried. I would make a push to ease around 150-1.
That was more or less general. If Debt to GDP increases or keeps increasing... people start to worry. Politicians want to keep their jobs. If a growing concern is the amount of debt we have and debt servicing is harder (higher rates, high inflation, appreciation) most will look to decrease/satiate the growing D/GDP while making debt servicing easier for lendees. In my own opinion, while the current debt metrics are alarming, I still don’t see the panic that some people do. However, if it’s brushed under the carpet for another 10 years without trying to reduce the D/GDP ratio, it could be very concerning.
"most will look to decrease/satiate the growing GDP while making debt servicing easier for lendees" you cannot do both simultaneously.