Government imbalances

Lacy Hunt: This Is One Of The Most Important Charts In Economics

Savings vs spending. Here is another way to look at it.

When we price via 'inflation' the ten year rises, and we reprice all the stuff we bought 40 years ago, we never paid principle. Price hikes get reflected in interest charges from the past.  We have tipped.

We will have defaults, but we will do a nice job of it. There is no reason we will screw it up worse than Nixon.