| With comments such as @BeatNavy
There is a significant lack of understanding that is presented.
Firstly, the US is not declining, it is still growing. China's trajectory is unavoidable solely on the basis of population. When China reaches the US' GDP, per capita it will be 25% of the US, think about that.
Secondly, the US' debt problems are greatly exaggerated. It is in the interests of the US to have the level of debt it presently does. Without the current US debt levels, there would be no accurate gauge for a 'risk-free' rate. Secondly, the massive growth in Pension Funds, Asset Managers, and Endowment Funds (all of which aid the citizen at the end of the day), is largely in part a result of growth in US credit.
If the US stopped issuing debt at current levels, yields on bonds would go down significantly (excess demand), and this would not be tempered by an increase in interest rates. This would result in falls in returns for pension funds and endowments, affecting people's retirement and student education.
Think about it, rather than regurgitating what you hear. |
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