[ExI] I Miss The King of Extropia
rex at nosyntax.net
Wed Jul 20 19:49:18 UTC 2016
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.
> 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.
"A rumor without a leg to stand on will get around some other way." - John Tudor
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