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Originally Posted by Rainger99
Interesting article on global debt.
Any comments or suggestions from any economists or financial experts? Is it as dire as predicted? Or does it exaggerate the problem?What are the solutions?
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neither a financial expert, nor an economist, just another poster with opinions who posts.
As long as the country can afford the interest payment, and can refinance/ rollover the principal, all its good. . remember that the US government is not the same as a commercial / private lender. that being said, as long as the USD is strong, money will keep flowing in from international lenders to the US GOVT. . its not all about the US citizens buying the US GOVT debt. However, if the US economy starts to tank in big terms, and the treasury funding is having a hard time selling the debt at the same or lower interest rate, then there will be a problem.
The key is to keep inflation low, which favors saving vs buying because prices are constantly increasing quickly. . and keeping the better economy amongst all the others, doesn't have to be great, just better than the alternatives.
When a bear attacks, you don't have to be the fastest runner, just not the last/slowest runner. . ie, better to panic early and be skeptical than oblivious. .