[ExI] I Miss The King of Extropia

[rex]

William Flynn Wallace <foozler83 at gmail.com> [2016-07-18 07:29]:
> Spike wrote:
>>    I sure can explain it to you.  If an entity continues to spend more than
>>    it takes in, and does it long enough, that entity will eventually go bust.
>>   spike
> 
>    Well, how about those who say that we have been in debt since 1835?  And
>    what does GDP have to do with it?  And what about the article?  Debt is a
>    good thing?  I understand what you say, but it seems that that is
>    irrelevant somehow.  I am with you and it scares me.

GDP has much to do with it because what matters is debt as a
percentage of income. Absolute debt values are meaningless without a
base GDP to compare the debt with.

If GDP increases faster than debt, debt can increase indefinitely without
causing a crisis.

-r
--
"A rumor without a leg to stand on will get around some other way." - John Tudor