That's actually a popular opinion. Wrong, but popular. 900B to 1 trillion per year in interest payments annually is a huge problem, and a reason why our country fracturing more and more.
Instead of spending 1T on homeless or food, courts, whatever, it goes to pay other countries back, pensions, hedge funds, and more thst own our debts.
The debt and debt service is exponemtial, and unsustainable, and we are all paying the inflation tax because of it.
Just to steelman, do you think people were saying a 10 trillion dollar debt was unsustainable as well? What about 15, 20, 25, 30?
Eventually it will be, the point is, I don’t think anyone has a clue when the hammer will drop
Yes, and it was. Hence why it's now 33T. When inflation is always 25%, they complain and rebel. I hope
If you made investment decisions thinking 10, 15, 20 trillion etc… were unsustainable and that a collapse/debt spiral would occur, it wouldn’t have worked out well for you. I agree that it is unsustainable over a long enough time period.
But just like the gold bugs who have been shouting that the usd is about to collapse for decades now, so buy as much gold as you can, you’d be wrong.
Knowing the direction is one thing, but in investing the timing is equally as important
What’s that quote, the market can stay irrational longer than you can stay solvent?
Most of that money goes back to the FED, and America is collecting more interest than it is paying out.
