I believe the risk posed by this debt is systemic and could do more damage to the economy than the recent financial crisis. To understand the size of the risk, take a look at the numbers that Standard and Poorâ€™s considers. The deficit in 2019 is expected by the CBO to be $1,200bn (â‚¬859bn, Â£754bn). Income tax revenues are expected to be about $2,000bn that year, so a permanent 60 per cent across-the-board tax increase would be required to balance the budget. Clearly this will not and should not happen. So how else can debt service payments be brought down as a share of GDP?
his explanation of the current financial crisis was the best I’ve heard yet, and I’ve heard and read many. No politicizing, no finger-pointing, clear, complete, and understandable. I’ve heard an interview with a journalist recently and he admitted that he and most journalists/news commentators have no idea what they are talking about when it comes to the matter of economics and finance. But since people are demanding answers, they pretend and make it up as they go. Mohammad Amin knew what he was talking about, and he knew better than most, and I’m not easily impressed.
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