Economics

Came across this interesting chart...it shows that the US is a net debtor to basically everyone in the world (…and pension holders) by a large magnitude.

Primarily happened post WW2 but with the Fed now raising interest rates (and “higher for longer”), it'll increase the interest payments on the debt for the US.

Founder. Builder. Advisor | MIT EECS | Blockchain dev since 2016 | Daily thoughts streamed: /lostfounder

2) the US defaults on its debt or austerity which can’t happen without civil unrest (see what happened in the Great Dression in 1929)

This means one of 2 things needs to happen, either:

1) inflation needs to run higher than the Fed interest rates. In other words the US dollar needs to be devaluing faster so the total amount of debt (aka “nominal value”) can be paid back with the same number of bills but which are worth less.

biotech software engineer // farcaster OG // fid 589

😂 so translation “this is the world’s (and pension holders’) problem not the US”?

Looking at this chart and I can think about is the saying:

“If you owe a bank $100 it’s your problem, if you owe $100m it’s their problem”

(US is the borrower in this case)

The US is now spending 1 trillion per year in debt payments!