I dont think only talking about national deficits is enough anymore. Total deficit picture is needed but even then couldnt account for cultural diffs. Its probably easier in some ways for Japan to entertain its huge debt with its huge trade surplus. I do think IDS has an effect on investors but they probably also are looking at other aspects of american indebtedness.
I find the whole picture of US indebtedness worrying. But I dont think gov debt isnt a prob yet. But another 10 years at 500 billion a year and Id have to say ouch. Probly if it hit 80-90% of gdp. But us is relatively undertaxed so there is room to correct that. I dont see the room to correct consumer indebtedness tho. The panacea of low % rates is worn out.
I also havent seen any numbers indicating the tax cut has made a measurale dent in consumer indebtedness.
I find the whole picture of US indebtedness worrying. But I dont think gov debt isnt a prob yet. But another 10 years at 500 billion a year and Id have to say ouch. Probly if it hit 80-90% of gdp. But us is relatively undertaxed so there is room to correct that. I dont see the room to correct consumer indebtedness tho. The panacea of low % rates is worn out.
I also havent seen any numbers indicating the tax cut has made a measurale dent in consumer indebtedness.
