Why compare debt against GDP? For a person, debt to income ratio is important, but I think debt to assets is a better indicator of how likely the debt is likely to be paid off (vs being defaulted.) For the US, if you divide debt ($33T) by assets ($270T), that ratio is just 12%. This ratio will grow into a big problem only in a massively deflationary scenario when the value of all assets goes down a lot while debt stays constant. In an inflationary scenario, 12% is not a problem.
I like Taleb's writings and agree with him on most things, but seems to me that the sky is not falling.
(Obtained the debt and asset values from Google Bard)
I like Taleb's writings and agree with him on most things, but seems to me that the sky is not falling.
(Obtained the debt and asset values from Google Bard)