AgsMyDude said:
tremble said:
Outdoorag011 said:
I keep on seeing articles saying higher rates are "here to stay". How can that be sustainable? Every month the government will have to roll over part of its matured debt with a good rate to these higher rates. All new debt will be at these higher rates. How fast until we hit $1 trillion a year in interest payments on our debt?
And then every year they will have to take out bigger debt to pay down the bigger interest payments… or raise taxes a crap ton
There will be a global debt jubilee at some point. Our boat is taking on plenty of water but you look at Japan, Europe, and China and it's ****ing insane how bad global government finances are.
I've never been great at following government financings and the debt ceiling
Who exactly are all those governments in debt to?
Largely to themselves. Japan has been buying its own bonds to try and keep yield control for the better part of a decade. China's central government really owns the share of local/state debts where the lion's share of the debt lies.
The problem for those countries is they don't own the global reserve currency, so any weakness in their debt structures can exacerbate balance of payment issues (nearly everyone internationally transacts in dollars, not yen or yuan despite what the Zero Hedge zealots try to sell you).
