/biz/ - Business & Finance

Just looking at debt to GDP doesn't take into account record low interest rates which actually make servicing the debt relatively cheap.

Anon, you see although debt to GDP is increasing the interest rates have been decreasing and so servicing the debt is becoming easier.

Besides the fed can always print more money which will cause inflation instead of default.

"Those who regularly preach doom because of government budget deficits (as I regularly did myself for many years) might note that our country’s national debt has increased roughly 400-fold during the last of my 77-year periods. That’s 40,000%!"

That buffet might be right, lots of dooms day people calling debt crisis any day :P