It seems that most if not all advanced economies (US, Japan, UK to name a few) have been running budget deficits since basically the last 20 years. I understand that current debts lose value over time because of inflation and economies grow, but how can they do this for basically ever? I can’t wrap my head around the maths that makes this possible, and the markets don’t seem all that worried
In: 316
They can’t. And they don’t.
If you look at actual historical examples, instead of listening to propaganda by mainstream economists, you’ll see that virtually no country managed to permanently bring the debt situation under control once it got too big, and that coupled with a few other factors caused the downfall of so many nations.
Debt and inflation are considered a big contributing factor to the fall of the Roman Empire for instance.
The system can cave in on itself any day with disastrous consequences, but the people in charge don’t care about that as long as it doesn’t happen on their watch. It’s a system that works very well short term, but bad in the long term. They’re just all banking on being a problem for your kids or grandkids, instead of now. They make their profit then bail before there’s trouble and leave us holding the bag.
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