Geece had to massively increase taxes and implement austerity programs, to say nothing of the EU bailout. Since then, they've been able to survive on low interest rates. Low interest rates which are now gone, as the world is busy fighting inflation.
Inflation cuts both ways, eviscerating older debt. That's the whole reason for the present banking crisis. In any event, the debt-to-GDP ratio being higher than Greece's at the time of its debt crisis says absolutely nothing by itself about the U.S. situation. Pointing it out is a baseless, cheap insinuation.
Except it's not, because our interest rates are also in the same range as when their debt crisis began. Greece was fine at those debt levels until their bond yields hit 5%, at which point they entered into a self-reinforcing spiral of insolvency. The Federal Reserve is currently targeting interest rates above 5% to fight inflation.
wahern|2 years ago
peepeepoopoo3|2 years ago