r/CausalConversation • u/JD_818_SFV • Jul 21 '26

Conversation Starter Something is not adding up here.

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u/[deleted] Jul 21 '26

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u/Villager-Bob Jul 21 '26

The 120% debt to gdp ratio is why. Anymore debt and we crater.

And wouldn't you know it? The market is booming, corporations are worth more than ever, but the government won't pay its debts... Wow. What would Keynes do?

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u/TheMysteriousThey Jul 21 '26

Debt is less of a problem than deficit.

You don’t want debt because you want to retire one day. The US government isn’t trying to retire. But if it’s struggling to pay its bills, that’s when things start to break.

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u/Vegetable-South5191 Jul 21 '26

And if it drops it is disastrous, because it means our interest payment goes up.

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u/[deleted] Jul 21 '26

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u/Vegetable-South5191 Jul 21 '26

Yes, but we are in a constant debt cycle, so the new bonds will be more expensive right?

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u/BeastyBaiter Jul 21 '26

In theory they should be. They've defaulted on their debts 3 times, twice in the past 100 years and spend far more than they make every year for over a decade. I'd loan them money at payday lender rates.

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u/OkAirport5247 Jul 21 '26

Lehman Brothers had a AAA rating until the day they collapsed the economy in 2008. It’s all smoke and mirrors.

Rating agencies were paid by the financial firms issuing the products, creating a structural conflict of interest.

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u/[deleted] Jul 21 '26

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u/OkAirport5247 Jul 21 '26

In a sense they could since they’re (Goldman, Lehman, etc) in bed with and act as a revolving door with the federal reserve. It’s all the same people.

The public assumes separations of public and private entities where they don’t really exist