This is very good. An economist who understands that you shouldn't dazzle yourself with numbers and instead look at the real movement of goods and obligations. One quibble:
Shouldn't that be higher rates encourage domestic saving? Low rates encourage debt-driven spending, high rates put a higher premium on deferring consumption and saving instead. Other than that everything in this article is directionally correct.
> Higher interest rates encourage domestic spending,
Shouldn't that be higher rates encourage domestic saving? Low rates encourage debt-driven spending, high rates put a higher premium on deferring consumption and saving instead. Other than that everything in this article is directionally correct.
Coda: https://www.worldgovernmentbonds.com/spread/greece-10-years-...
Just now, Greek bonds are deemed a lower risk investment than US government bonds, because the tariff announcement has spooked the market.
The Republicans are not going to cut the debt: https://www.bbc.co.uk/news/articles/c7vnnv6n29no they're going to do deficit funded tax cuts again. The tried and tested Liz Truss budget.