Is USA debt repayable? Or are governments just hiding the truth - that infact western governments can never repay their debts, and that eventually sovereign bonds will collapse.
Does anyone actually have an answer to this? Is USA government heading down a road of responsible payback of its debt, or a road of full-on Keynesianism that will eventually lead to financial catastrophe.
I know that it would be in government's interest to hide the fact that debt was , at current economic growth rates , unrepayable. But I just want to know the truth. Lets assume USA economy continues to grow at current rate and deficit continues to grow/shrink at current rate. Where are we in 10 years? Is the debt repaid, halved or has it grown more?
Side question - If the debt is repayable, panic over. If it's not, how long will it take for markets to reflect this. Also - If anyone has some numbers, all the better.
Cheers
Of course it's repayable.
But it requires printing which is going to be politically and socially unacceptable. Not least because then confidence will be lost in the currency, and top down printing is rarely well distributed.
Debts that cant be paid wont be paid. There will be haircuts ... the only question is who will be left standing when the music stops .... sadly, it's often the weakest in society ...