Unsustainable.............from Rico

Unsustainable debt expansion.

Huh? What dat?
- It means we cannot keep it up, and Enzyte or Cialis will not be helpful.

Q2 2009 the total US debt outstanding = 373.4% of GDP. In 1952 the debt-to-GDP ratio was 130%.

The current upward trajectory of the debt-to-GDP is unsustainable!

Low vs. High estimates of interest payments on this debt reflect the same thing (scenarios 1 and 2), but are essentially moot. The level of debt cannot rise without limit.

I subscribe to the Austrian School and their economists who theorize that ever greater amounts of credit and money (at low interest rates) are needed to keep the cycle 'going', BUT the value of money will drop and inflation will increase. Inflation will lead to default on the debt.

In another context.

This is why, in 2000 over 40 ounces of gold would buy the Dow index, but today 9.4 ounces of gold will buy the Dow index.

Argentina-Weimar-Zimbabwe. Wanna buy some bonds backed by the "full faith and credit" of the government?
- I also have some bundles of defunct currency (fiat currency) that make swell fire-starters for my fireplace that I'll sell you instead of the bonds (ref infra).