/biz/ - Business & Finance

>>57652090
The 80s and 90s debt panics were caused by a modest amount of debt and Volcker-tier 15-20% interest rates.

They were resolved by a combination of the peace dividend (slashing defense spending after the Cold War ended), the 90s tech boom, and deregulation bringing down inflation (allowing rate cuts).

Our situation starts out almost the exact opposite - 122% debt-to-GDP that is already at historically low interest rates. We have wars heating up, an economy burning through its pandemic sugar rush, and an increasingly batshit DC (see LNG exports, for example). Oh yeah, and the country is far less White nowadays.

>>57056663
Yeah, super weird that the wealthy want to inch their money towards a useless scam coin. Don't they know they can lend Yellen money for 30 years and earn a whopping 4%??

>>55092983
Anon, stopping the payment of interest is a default. Having the Fed print money to buy trillions more worth of bonds is a default. Borrowing more to pay the interest just so you can survive another year is a death spiral that drives yields to more and more crushing levels leading to, you guessed it, a default.

These things are exponential. And, again, we're already this fucked during *good* economic times.

>>53579091
Literally none of them. The US and EU economies have been running on nothing but government/central bank stimulus for about 20 years, and now they're finally out of runway because of inflation/debt levels. During that time they also offshored all of our domestic manufacturing (read: the only part of the economy that matters) to China. It's fucking over. Not only do we have no domestic manufacturing anymore, but we also have higher debt to GDP than WWII. China realizes this and now they're beginning to challenge us militarily since they know we have no way to respond without causing hyperinflation.