Following up on John Bolton's recent comments that US debt may pose a "threat to society", Jim Rickards explains that the US is continuing to go broke, slowly but surely. Below is an excerpt from his article on this.
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"As Grant points out, the national debt has registered compound annual growth of 8.8%, but only 6.3% for GDP. That’s not a sustainable situation. And it’s not at all clear that GDP will close the gap.
Basically, the United States is going broke."
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Additional comments: Not to worry though. No one really cares about this and it's pretty clear no one thinks it will ever matter in any meaningful way. The only time anyone expresses "deep concern" over this situation is when their political party is out of power.
Now both parties have some power so no one has to bother with pretending to be concerned (unless polling indicates there is some political gain to be had). And we can be sure that any concerns that are expressed will blame the "other guys" for the problem if anything bad does actually happen. Markets should be pretty happy as all this is completely predictable and markets love that.
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