"" some correlation between high debt and slow growth, with no indication of which is causing which, but no sign at all of that 90 percent “threshold. ""
We aren't told how high high is. We don't now which direction it goes in. This debt ratio thing needs to be knocked on the head. Everybody without the correct information will assume that 100% = very very bad whereas it only means a year's GDP. I say only but you get my drift. If the consensus tomorrow was to base the debt ratio off of 3 years GDP then 90% (~10 months) would go down to 30% wouldn't it? 30% doesn't sound that bad! Hey we've only got a 30% debt ratio, let's party!
We aren't told how high high is. We don't now which direction it goes in. This debt ratio thing needs to be knocked on the head. Everybody without the correct information will assume that 100% = very very bad whereas it only means a year's GDP. I say only but you get my drift. If the consensus tomorrow was to base the debt ratio off of 3 years GDP then 90% (~10 months) would go down to 30% wouldn't it? 30% doesn't sound that bad! Hey we've only got a 30% debt ratio, let's party!