Public debt destroys; it creates nothing. From Daniel Lacalle at dlacalle.com:
In a recent tweet, a talented financial analyst and investor stated: “The “debt is unsustainable” narrative has been around for 40 years plus. What’s astonishing to me is how the people who push this narrative never ask themselves, “Why has it been sustainable for so long?”.
There is a widespread idea that the fiscal imbalances of a world reserve currency issuer would end in an Argentina-style bankruptcy. However, the manifestation of unsustainability did not even appear as drastic in Argentina itself. Hey, Argentina continues to exist, doesn’t it?
Excessive public debt is unsustainable when it becomes a burden on productive growth and leads the economy to constantly rising taxes, weaker productivity growth, and weaker real wage growth. However, the level of unsustainable accumulation of debt may continue to rise because the state itself imposes public debt on banks’ balance sheets and the state forces the financial sector to take all its debt as the “lowest risk asset.” However, law and regulation have merely imposed and forced this construct. Rising debt bloats the government’s size in the economy and erodes its growth and productivity potential.
Many diabetic and obese people continue to eat too much unhealthy food, thinking nothing has happened so far. That does not mean their eating habits are sustainable.
Those who ignore the accumulation of public debt tend to do so under the idea that nothing has happened yet. This is a reckless way of looking at the economy, a sort of “we have not killed ourselves yet; let us accelerate” mentality.
Printing press go brrrr?
Yellen wasn’t gellin and the comrades weren’t yellin but laughing when told to slow your roll.
My favorite is the teevee economy is on fire report while the bottom scroller says massive layoffs in every sector of the “comony” as it is called in the great documentary masterpiece Idiocracy by Mike Judge.
Beavis and Butthead could do a better job than what we have now running this clown shitshow.