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Spin Zone / Re: What exactly is it about Trump that qualify his win as equally bad?
« on: September 13, 2016, 03:06:48 PM »"one GDP in debt" is a meaningless number. The US government's debt is 19.3 trillion on a ~3 trillion dollar government income. If being one year in debt is bad then being 6.43 years in debt must be even worse. This is like having a $100,000 salary and owing $643,333 in debt. With that kind of debt, the US's FICO score would probably be in the low 300s (300 is the minimum).It is sustainable now ONLY because interest rates are close to 1%, and the debt service is STILL being paid for with borrowed money.
Unsustainable? No, regrettably this is very sustainable for a long time. But it sucks money from people to do it and the ones it impacts the hardest is the poor and middle class.
What happens when the Treasury yields start moving up to 2%? What about 4%, 6%, or more?