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

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)

biotech software engineer // farcaster OG // fid 589

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

yeah exactly haha

my prediction is that we get a new baseline inflation of 3-4% and a nice boost to GDP growth from productivity gains

so the debt will reduce in real terms, and as a proportion of GDP

of course the smart thing to do would be to eliminate wasteful spending (so much grift in govt spending on healthcare and military), reform immigration (the U.S. should have 500m folks or more), and deregulate sectors with high inflation (housing, education)

it won’t happen but one can dream