https://www.reuters.com/article/us-health-coronavirus-debt/many-countries-may-need-debt-restructuring-after-pandemic-fallout-imf-chief-economist-idUSKBN2482R3
It makes sense to restructure the debts in many countries because high debts are unsustainable over the long term.
The USA has about US$80T total debts now with a GDP of US$21T. Therefore, the ratio of debt to GDP is 4:1.
http://sg-stock.blogspot.com/2020/04/the-us-economy-will-be-in-deep-troubles.html
http://sg-stock.blogspot.com/2020/05/the-us-economy-will-be-in-deep-troubles.html
This means that the USA is using US$4 debt to generate a US$1 GDP which is unsustainable in the long run.
Now you know that the US will never be able to repay all its debts because it can only afford to repay 25% at most.
ReplyDeletehttp://sg-stock.blogspot.com/2019/08/does-us-2-10y-inverted-yield-curve.html
ReplyDeleteWe did warn about the US debt growth in 2019.