Share this postDo Deficits Matter?realwealthconcepts.substack.comCopy linkFacebookEmailNoteOtherDo Deficits Matter?Charts comparing the US and Japanese experience + a bonus chartOct 02, 20211Share this postDo Deficits Matter?realwealthconcepts.substack.comCopy linkFacebookEmailNoteOther3ShareUS government spending as a % of GDP is at its highest level over 50+ yearsDoes it matter? Perhaps not, if you view government deficits as an offset to private sector surpluses.Also, despite rising deficits, US government’s cost of borrowing has fallen consistently since the early 1980sJapan has had a similar experience: Government spending as a % of GDP has been high for decadesDespite persistent deficits, yields on 10 year Japanese Government Bonds have declined since the early 1990s and are today lower than in the US.Question: Do deficits matter? Reply and let me know what you think.Bonus Chart: Prices and business activity are diverging. Watch this space…PreviousNext
When you rob the future to pay for the past , we are living beyond our means !