finance

With US debt to gdp ratio making new records, you might be wondering when politicians start worrying.

From Eric Leeper (advisor to the fed & central banks): 

When interest payments on the debt start to chew up a large fraction of federal spending, that's when it really bites the politicians & they pay attention.

The problem has been that until recently debt service has been trivial even though debt has been elevated but that's all changing very quickly. Once you start seeing that a big chunk of your budget is going to bondholders you start to take action.

The problem has been that until recently debt service has been trivial even though debt has been elevated but that's all changing very quickly. Once you start seeing that a big chunk of your budget is going to bondholders you start to take action.

https://youtu.be/aD-5fO6dzfc?t=4554