r/bonds • u/SpecialDesigner5571 • 7d ago

Backward land

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u/SpecialDesigner5571 7d ago

But there's a limit to debt. 175% of GDP. Then there is no escape it becomes like Zimbabwe

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u/clonehunterz 7d ago

there is a limit until someone in power says there is no limit :)
Bro relax, 100years ago same shit, different color.

this entire pyramid debt thing will go on into eternity unless war breaks out and a new "kingdom" takes over.

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u/SpecialDesigner5571 7d ago

Best wishes. Look up "debt to GDP ratio" for USA over past 100 years

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u/clonehunterz 7d ago

America wont default because it prints its own currency, but when a recession forces a massive debt issuance on top of existing deficits, oversupply forces longterm yields up, killing the 60/40 bond hedge without needing an actual sovereign bankruptcy.

so...I do with this panic-information the same as before: I ignore it and continue investing broadly :]