7d (edited) • General discussion
New video is up!
The GAO just told Congress that US debt is heading for 250% of GDP in 30 years.
Sounds like a disaster waiting to happen, right? 🤔
Steve Keen digs into their model in Ravel© and finds something they got fundamentally wrong.
They assume deficits take money away from the private sector. Turns out, it is the other way around.
A deficit creates money in private bank accounts, and bonds go to banks first, not households. Fix that one detail and the exponential spiral they are warning about just does not happen
What the GAO never even mentions is private debt. Velocity of money has dropped from 2.2 to 1.4 turns per year because households are buried in debt repayments.
That is what is actually dragging the economy down, and it is what caused the 2008 crisis. Not government spending.
Really clear breakdown, well worth your time so do check out the video 🔥
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New video is up!
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