BloombergOpinion/Ferdinando Giugliano/2-8-2021

“The argument is that debt sustainability is less of a problem if central banks keep interest rates ultra-low. Governments should ditch old fetishes, such as the ratio between debt and gross domestic product, and concentrate on more meaningful measures like interest payments as a percentage of GDP. You can see the appeal.”

USAGOLD note:  Fashionable economic trends are not always based on logic or even common sense but the machinations of some professor somewhere with little or no experience running a business or managing a major organization – let alone a government or an economy the size of the United States. As Giugliano points out in this opinion piece, the latest fad favoring debt and deficits has a major flaw:  It does not take into account the impact of inflation suddenly achieving liftoff.

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Original source: https://www.usagold.com/cpmforum/2021/02/histsory-tells-us-to-worry-about-inflation/