Dave Brat on GETTR : Has it ever occurred to these Keynesian boneheads that when it comes to the endless accumulation of debt that there may come a state o...
Has it ever occurred to these Keynesian boneheads that when it comes to the endless accumulation of debt that there may come a state of diminishing returns? Or that more debt today ensures less jam tomorrow? Once the dollar was cut loose from its anchor to gold in 1971, however, it was off to the races. Collective income or GDP is now 2,300% higher, while collective debt is up by 5,600%. Accordingly, the US economy’s leverage ratio has soared to 357% as of 2022. $53 trillion of incremental EXTRA debt burden that would not have existed at the pre-1971 leverage ratio. That is to say, the current aggregate US debt level would be $41 trillion, not $94 trillion.
Has it ever occurred to these Keynesian boneheads that when it comes to the endless accumulation of debt that there may come a state of diminishing returns? Or that more debt today ensures less jam tomorrow? Once the dollar was cut loose from its anchor to gold in 1971, however, it was off to the races. Collective income or GDP is now 2,300% higher, while collective debt is up by 5,600%. Accordingly, the US economy’s leverage ratio has soared to 357% as of 2022. $53 trillion of incremental EXTRA debt burden that would not have existed at the pre-1971 leverage ratio. That is to say, the current aggregate US debt level would be $41 trillion, not $94 trillion.