CONDITION 1: If the debt grows at a faster rate than GDP, then a Malthusian chain reaction is unleashed.
CONDITION 2: If the debt is larger than GDP and also grows nominally faster than GDP, then a Malthusian chain reaction is unstoppable.
This is not a prediction of the future.
This is just math. nostr:note1r8qmqt33w2qtqkav7etk3l92dyggxyha6k2gsklcazzfgnezxjgq4es72a
what do you mean by a Malthusian chain reaction?
Tag me as well if someone answers to this!
Where the existence of something necessarily produces more of it, in an exponential way.
GDP is $23T and growing at 3%
Debt is $32T and growing at 6%
The debt is paid from GDP at a service rate of 5%. See the problem?
At some point in the future even 100.00% of GDP will not be enough to service the debt.
National debt is benign in a lot of conditions, but if you lose control of it like this, you get locked into an inescapable malthusian catastrophe.
Need more of this type of stuff on #nostr thanks for sharing this. Is this where yield curve control comes in eg Japan?
Yes, and also the high taxes.
Japan spends $260 billion servicing its debt.
They spend about $4,500 per worker on just servicing their national debt. Average income is $45,000.
So around 10% of your income in Japan, is wasted on continuing their broken financial system. This 10% figure will continue to rise.
