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It's really incredible to still be reading things like this at this late date -- not just because of all the failed predictions of disaster, but because of the arithmetic 1/ wsj.com/articles/the-d…
As of Friday, the interest rate on inflation-protected US 10-year bonds was 0.54 percent. This tells us that markets are completely unworried about debt; it also says that debt arithmetic is completely inconsistent with crisis-mongering 2/
Remember, the Trump administration is promising 3 percent growth, and even non-voodoo projections put it at around 2 percent for the foreseeable future. That's way bigger than the real interest rate, so no debt spiral 3/
That's why genuinely serious economists like Olivier Blanchard are saying that debt is just not a top-tier issue. Why should anyone believe scaremongers now? Especially if they have a long track record of predicting debt/inflation disasters that never happen? 4/
