Like the bond market, this boomer is not okay about debt


Like the bond market, this boomer is not okay about debt

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I'm a boomer, and I'm calling out government debt. Nobody talks about it anymore. Indeed, there's a new crank theory of economics that says governments can borrow unlimited amounts of money without consequence.

The golden years of near-zero interest rates have a lot to answer for. Government debt is now 60 percent of Australia's GDP, and it somehow needs to be serviced and repaid. Thankfully, we're a minnow compared with the USA's whopping 126 per cent debt-to-GDP ratio, but the US still has the world's reserve currency in places where it counts. Despite their tariff policy, their growth rate is almost double ours.

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