Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

Looks to me like GDP is growing faster than the debt, at least over the past 2-3 years: https://fred.stlouisfed.org/series/GFDEGDQ188S


Yes due to soft default (inflation). If you look at projected debt burdens, they are predicted to grow faster than gdp if inflation targets are met. If inflation targets aren’t met, like they haven’t in the past few years, then it’s effectively a default since the government is paying back less in inflation adjusted dollars than it borrowed. Plenty of other countries have tried this strategy and it doesn’t merit a high credit rating.


You need to look at real GDP not nominal.


Do you? I don’t like it, but the government is allowed to pay off the debt with inflated dollars.


I mean, meanwhile the standard of living keeps declining. Health, food, transportation...


Nominal debt / nominal GDP should be equivalent to real debt / real GDP, so it shouldn't matter




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: