Flopper
Diamond Member
- Mar 23, 2010
- 31,666
- 8,786
Our debt to GDP ratio will only be problem when other major economies in the world are more attractive to investor in sovereign debt than the US. A combination of factors relative to other countries will determine this such as debt to GDP ratio, stability of currency, size of debt offerings, liquidity of debt offerings, and the nations ability to repay debt and pay interest. As long as the US appears to be a better place to put money, there will be no problem with financing the debt.They are borrowing more money to pay the interest on the money already borrowed.
This cannot go on forever. Sooner or later the debt to GDP ratio is going to strangle us