WEB Notes: These “economists” now make it sound like debt levels over 100% of GDP is not a problem, since every other nation is doing it.
If it’s “okay”, then why can’t citizens expand their debt without payment as the nations do? Allowing the government to expand their debt to unpayable levels simply gives them an out. While the working man’s money becomes worthless by the day.
“At this stage, I think, nobody is very worried about debt,” said Olivier Blanchard, a senior fellow at the Peterson Institute for International Economics and a former chief economist for the International Monetary Fund. “It’s clear that we can probably go where we are going, which is debt ratios above 100 percent in many countries. And that’s not the end of the world.”
At the end of last year, the United States was about $17 trillion in debt — roughly 80 percent of the gross domestic product. In January, government analysts predicted that debt would approach 100 percent of the G.D.P. around 2030. But by the end of June, the debt stood at $20.53 trillion, or roughly 106 percent of G.D.P., which shrank amid widespread stay-at-home orders.
Source: DNYUZ