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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 379.91+0.4%Nov 11 4:00 PM EST

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To: Horgad who wrote (145324)1/11/2019 6:54:07 PM
From: Gemlaoshi4 Recommendations

Recommended By
bruiser98
Cogito Ergo Sum
Horgad
marcher

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Horgad,
Thanks for the excellent chart.

These cases seem more or less impossible to predict by looking at just debt levels (see Japan in the link for example).
As you pointed out, the Debt/GDP ratio is just one variable to consider in determining economic impact of national debt.

Perhaps more important is how various countries put that debt to work via "capital productivity". As with households, there is "smart debt" and "dumb debt".

Most of the Asian economies (including Japan and Singapore) have done an excellent job of investing borrowed money into infrastructure, technology transfer, R&D, protection of home markets, etc., that result in GDP growth greater than the cost of the debt.

The US, on the other hand, has wasted Trillions of $ on military adventures which are a net/net loss.

The Eurozone has also failed to embrace capital productivity by stubbornly subsidizing inefficient labor productivity schemes. Thus, expect the Greece/Italy/Portugal/Spain/etc. situations to not improve anytime soon.

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