Probably not – but high and rising debt will boost CPI and interest rates, and stifle GDP growth and investors’ returns. In America’s real debt crisis (15 May), I wrote: “The choice is stark: Americans must either undertake radical budget reform and (public) debt deleveraging, or accept continued economic stagnation – and if current trends worsen, eventually risk a debt … [Read more...] about Is Australia Risking a Debt Crisis?
Archives for May 2023
America’s real debt crisis
The exponential rise of debt is stifling its economic growth. It thus takes ever more dollars of debt to generate an extra $1 of GDP. In Fortune magazine on 22 November 1999, Warren Buffett recounted to Carol Loomis: “Someone once told me that New York has more lawyers than people. I think that’s the same fellow who thinks profits will become larger than GDP. When you begin … [Read more...] about America’s real debt crisis