Tuesday, January 1, 2019

Researchers have found that once a nation exceeds an 80% debt to GDP ratio, they significantly increase their risk of causing hyperinflation

60) That is what one would expect since massive government debt is what compels a nation to print money. The money is used to repay the debt but in doing so, the nation's currency is devalued which causes hyperinflation and economic collapse.
6:27 PM - 1 Jan 2019
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Robby BallTweet text
 
 

    1. New conversation
    1.  1 hour ago
      61) Researchers have found that once a nation exceeds an 80% debt to GDP ratio, they significantly increase their risk of causing hyperinflation and suffering an economic crisis.
      3 replies40 retweets112 likes
       
       
       
    2.  1 hour ago
      62) A study by the World Bank found that a 77% debt to GDP ratio tends to slow economic growth. For developing nations, even a 64% debt to GDP is bad news. (A country that spends money on debt, can't spend money on things that stimulate the economy.)
      3 replies30 retweets78 likes
       
       
       
    3.  1 hour ago
      63) Currently, the US debt to GDP ratio is close to 100%. (Our GDP is around $21 trillion and so is our debt.)
      4 replies46 retweets108 likes
       
       
       
    4.  1 hour ago
      64) Side note: Japan leads all nations in debt to GDP ratio at 228%. Most nations would have suffered economic collapse long ago with those numbers but Japan owns most of its debt so it can repay it whenever it wants (or not).
      6 replies48 retweets144 likes
       
       
       
    5.  45 minutes ago
      65) Currently, the total US Federal budget is a little more than 4 trillion dollars. 2.5 trillion is spent on non-discretionary items. Around 700 billion is spent on the military. More than 300 billion is spent on the interest payment on the federal debt.
      5 replies49 retweets82 likes
       
       
       
    6.  45 minutes ago
      66) The 2.5 trillion in nondiscretionary items is spent on federally mandated programs like Medicare, Medicaid, Social Security and veteran's benefits.
      3 replies28 retweets54 likes
       
       
       
    7.  45 minutes ago
      67) Because our federal debt keeps rising we will soon spend more on the interest on our debt than on our military. (Note, we aren't paying down the principal.) In ten years, we may be spending a trillion dollars a year on debt repayment.
      2 replies31 retweets55 likes
       
       
       
    8.  45 minutes ago
      68) Some people aren't concerned about rising debt. They point out that we can always print more money to repay it. You know... the way Zimbabwe and the Weimar Republic did. 🙄
      6 replies41 retweets107 likes
       
       
       
    9.  45 minutes ago
      69) Our debt problem can't be solved by printing more money. What happens to our economy and national security when we can't pay for other programs because we owe a trillion dollars in debt payments? That is the most serious problem we currently face.
      12 replies67 retweets146 likes
       
       
       
    10.  24 minutes ago
      70) When a nation passes the tipping point—when it cannot realistically repay its debt to other nations, there is only one option left: It must default on its debt.
      4 replies25 retweets52 likes
       
       
       
    11.  24 minutes ago
      71) If the US were ever to default on its debt, the ramifications would be earth-shaking. The central banks of the world are depending on us to make good on our debt—eventually (even though we're only keeping up on the interest payment right now.)
      1 reply14 retweets40 likes
       
       
       
    12.  24 minutes ago
      72) A US default would likely collapse the world's central banks. The $1 trillion we owe China and Japan would never be repaid. The world's stock markets would implode and trading would be halted. It could precipitate another world war.
      3 replies20 retweets40 likes
       
       
       
    13.  24 minutes ago
      73) As uncomfortable as that possibility may be, the more time passes and the larger our debt grows, the more likely we are to default on it.
      3 replies19 retweets59 likes
       
       
       
    14.  24 minutes ago
      74) Some people are hoping that Trump has a silver bullet. A secret source of money, like Leo Wanta, that will magically repay our debt. That would be nice but I don't know if it's a realistic possibility.
      10 replies20 retweets62 likes
       
       
       
      15. End of conversation
    2. New conversation
    1.  2 hours ago
      Replying to 
      The best predictor of hyperinflation is not any debt ratio but confidence in government and government stability. Study Martin Armstrong
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    2.  1 hour ago
      A valid observation but those things are difficult to measure objectively.
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Posted by Robby Ball at 5:15 PM