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Soon the money paid in interest on the debt will exceed the money the government spends on anything else.
the invisible secondary effect of too much debt is the value of our currency drops against some others without the problem we have.
3. China was able to accumulate a lot of US debt
Fortunately China only owns about $1.1 trillion out of a total of about $25 trillion in US debt.
China's holdings peaked at $1.4 trillion in 2014.
Misc saysAs we saw a few weeks ago asset prices can go negative. The price of oil went down to a negative $40 per barrel roughly.
Oil is a consumptive commodity, and thus makes for a poor asset, unlike real estate, art, bonds, stocks, etc.
It is thus treated as such by the markets.
Misc saysThis was the 1st time ever it went negative.
That was future contract pricing that did that. Oil is a commodity, not an asset. You don't consume assets.
https://noqreport.com/2020/05/15/modern-monetary-theory-the-little-known-consequence-of-the-massive-coronavirus-bills/
There are many perspectives about what Modern Monetary Theory really is, but the worst perspective is the one shared by a majority of Americans. It’s the perspective of ignorance to the concept at all. Now is not the time to dive into definitions or debate nuances. Instead, let’s explain it in layman’s terms, which is easy considering our current situation. With Modern Monetary Theory, the government essentially prints whatever money it needs in order to pay for whatever programs it wants. That’s what’s happening with these coronavirus bailouts as we spend money that never actually existed.