Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: RMF who wrote (852836)	4/28/2015 1:35:33 PM
From: TimF	Read Replies (1) of 1577381

Both are variable. Generally both vary upwards, but the rate of change varies. People that bought houses in 2005 were doing great as long as home prices kept rising, but then 2008 came along and suddenly they could no longer service their debt load. The equivalent with government debt is that you want its percentage of GDP to be low enough that you can cover it either in bad times (when government revenue goes down), or when there is high interest rates (and government has to pay more). You can't get any answer about how big of problem the debt is by saying "over X years it tripled", you can get something of an answer by looking at debt to GDP, and to a lesser extent (because growth rates are more volatile then either debt or GDP) deficits compared to GDP growth over time (not so much each year, because when GDP growth turns negative you don't necessarily want to try to slash deficits).

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