Long term interest rates are currently close to zero, so measures to tide us over the crisis do not need paying for. Ever. Thinking they do is a fundamental misunderstanding of macro economics.
The debt is only sustainable while interest rates remain very low.so measures to tide us over the crisis do not need paying for. Ever.
Ooo, now you've come up with a genuinely important question.And failure to place a full stop after etc, possibly?
Not really. All that happens is new bonds are issued to repay the onld ones. This is fine until one of the following happens:It'll be by long-term bonds and taxes that we'll be paying for decades. No different to the costs for the 2nd World War, that we've just finished paying off, and the re-patriation payments to slave owners ( ) that we finished paying off a few years ago.
You, I and our grandchildren will be paying for it through increased taxation.
50 year bond rate currently 0.9%The debt is only sustainable while interest rates remain very low
I think that must be true.There will be a reckoning on this when interest rates return to historical norms but as to when, I have no idea
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