Hello, Welcome to Known Unknowns, a newsletter about our impending doom—unless we get lucky, because there’s always the possibility of upside. Debt bombs and inflation We now have the highest amount of debt that we’ve ever had in our history as a nation. Our current debt rivals the debt-to-GDP ratio that we had during the Second World War. But this time is different. The attention now is on spending a couple trillion dollars on a stimulus to keep the economy going as the virus rages on. But no matter who wins the presidency, it seems that government spending will feature prominently in the economic recovery. In the past, large shocks are followed by expansions in the safety net and infrastructure spending. And we also have healthcare and social security to pay for as well.
Known Unknowns
Known Unknowns
Known Unknowns
Hello, Welcome to Known Unknowns, a newsletter about our impending doom—unless we get lucky, because there’s always the possibility of upside. Debt bombs and inflation We now have the highest amount of debt that we’ve ever had in our history as a nation. Our current debt rivals the debt-to-GDP ratio that we had during the Second World War. But this time is different. The attention now is on spending a couple trillion dollars on a stimulus to keep the economy going as the virus rages on. But no matter who wins the presidency, it seems that government spending will feature prominently in the economic recovery. In the past, large shocks are followed by expansions in the safety net and infrastructure spending. And we also have healthcare and social security to pay for as well.