Againsheila
Gold Member
You could have acknowledged he was right about actual dollars, but the percentages play into the analysis. In this case however, the amount of economic growth required is not achievable or sustainable in order to effectively reduce it this time.
Actual dollars are meaningless when comparing historical debt levels -- everybody should know that.
As for the slower growth -- it is not all that important. Japan had slower growth for decades, its population is shrinking and it has its debt rating cut way back in 2002 and its debt to GDP ratio is now at 230% GDP. Yet it borrows at lower rates than the US.
You can't declare our debt as being "unsustainable" just because it looks big to you.
Funny you should use Japan as your example. You do know they have a maximum income? Their CEOs are not allowed to make more than (I can't remember the exact number but I think it's 10 times) that of their employees. Perhaps if we went by their example, we could survive and save the dollar? That'll never happen here in a million years.