Public Debt: how much is too much?

The covid-19 pandemic is set to increase public debt to levels last seen after the second world war. But is rising public debt a cause for concern? New economic thinking suggests perhaps not, at least for now.

Further reading:

[lailaalfaddil]

This is financial advice and I never give financial advice: DONT LEAVE DURING THE BEAR. If you don’t want to invest…learn. If you don’t want to learn…build. If you don’t want to build observe. DO SOMETHING…other than leave. There is so much opportunity here. Take advantage!

[bb]

Strange the elephant in the room, the central banks, are never addressed. When speaking on interest rates, the artificial lowering created by CBs is also never mentioned.

[economicsinaction]

"The UK Public debt is high: PANICCCC"

Japan: *"Amateurs"*

[TheStubertos]

"Economists have no idea why interest rates are so low..." Uuuuhhh that little thing they've been doing for the last decade called Quantitative Easing maybe?

[QuestionEverythingButWHY]

“Politicians and diapers must be changed often, and for the same reason.”
― Mark Twain

[sycon]

If your money becomes worthless, your debt becomes worthless.

[davidk.]

Federal Reserve :Nah its ok just print more money
Weimar Germany: oh really...

[mike-coles]

Public borrowing is predicated on future growth. The notion that economic growth will continue with certainty, forever is naive. We’re basically living beyond our means and expecting our children to pick up the tab.

[folk.]

Mark my words: INTEREST RATES WILL NEVER RISE AGAIN

[budawang]

This video proves how hopelessly deficient mainstream economics is. No mention of central banks and QE?

[salokin]

Basic macroeconomic knowledge like this should be mandatory in schools

[Andrewjpritchard]

Another misleading thumbnail which doesn’t answer the exam question which it set itself.

[klank]

The world has a history of debt forgiveness. We've been borrowing 'happiness from tomorrow' for centuries. You leverage it until its worthless!

[liyexiang]

oh, i know how rates has gone wildly low when central banks keep pushing short term rates down, when they keep buying further alone the curve, and when they go down and buy junk bonds. Of course, we do

[tzuqbts]

If you don't let bad companies fail, they never go through bankruptcy proceedings and restructure. It's very important to let the economy fall from time to time so it can restructure.

[kjotrkl]

The best thing that should be on everyone mind currently should be to invest in different stream of income that doesn't depend on government especially at this time of this pandemic.

[beaverbridge]

Video: "We don't know why interest rates are low."
Government Central Banks: "Our official policy is to print money to achieve these low interest rate targets."

[EddyMercury]

The Central banks such as the Fed and the ECB are the ones responsible for low interest rates and they will keep them low as long as governments need them to be. They can afford this because there is no inflation in the price of consumption goods. But this is at the expense of individual savers that get almost 0 return on their savings account. Besides, this money printing is feeding a bubble in the price of assets such as stocks and real estate which benefits wealthy people in the end.

[jamesedward]

Nobody's buying bonds the only person buying bonds is the central bank

[brocalyboy]

The idea that interest rates are a mystery is absurd. The Fed can produce as much cash to buy bonds as it wants. It can also issue as many bonds as it wants. It's an effective monopoly. It has extensive control over interest rates. Not sure why this wasn't raised in the video... Seems like a fairly critical point...