7 ms·

>The US probably hasn't been this economically dominant since after WWII. now look at the deficits.

• ceejayoz 2y ago
  Which are roughly like me having a mortgage that’s the same as my annual salary. Which is quite commonplace. It’d be a problem if we had to pay it all off tomorrow, but we don’t.
  • gauravphoenix 2y ago
    depends on the mortgage if it is fixed or variable. have a look at this: https://tradingeconomics.com/united-states/interest-payments-percent-of-revenue-wb-data.html https://tradingeconomics.com/united-states/interest-payments... it is like borrowing at higher rate than the rate at which are are growing our income.
    • ceejayoz 2y ago
      Current value for that metric is the same as 1985, if you expand the chart.
      • gauravphoenix 2y ago
        absolutely. and now look at the inflation and fed rate of late 70s and 80s. we have not yet won the inflation war and fed has already paused the rate lowering cycle. so if we need to increase the rate higher to bring inflation down to 2%, imagine the % of debt payment as part of revenue; in 70s/early 80s, the fed rate was as high as 15% compared to 4-5% now. To understand the scale at which we have printed money, analyze the fed balance sheet https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm https://www.federalreserve.gov/monetarypolicy/bst_recenttren...