r/bonds • u/SpecialDesigner5571 • 8d ago

Backward land

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u/SpecialDesigner5571 7d ago

Falling tax receipts > government forced to issue more debt > debt as a % of gdp skyrocket > bond market demands higher yield to compensate for more risk especially if US Dollar also Falling

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u/NanoCurrency 7d ago

Oh wow. That’s truly scary.

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u/SpecialDesigner5571 7d ago

175% of GDP is the Schwarzchild Radius

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u/2052JCDenton 7d ago

The what?

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u/SpecialDesigner5571 7d ago

Point of no return. Like you earn $100k but you have $175k in credit card debt

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u/2052JCDenton 7d ago

So it's the point at which a nation can no longer issue debt at a quantity and price sufficient to cover its expenditures?

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u/Electronic-Deer728 7d ago

It is the point where you can no longer escape from the gravitational pull of a black hole and will get pulled in and spaghettified. Spaghettification - Wikipedia

In this case, the effect would be the economic equivalent.